The Impact of ICT on Energy Consumption: Investigating the Roles of ICT Dimensions, Economic Development, and Energy Sources Across Low-, Middle-, and High-Income Countries

This study provides insights into three issues regarding the nexus between information and communication technology (ICT) and energy consumption. First, what are the impacts of different dimensions of ICT development (i.e., fixed telephone subscriptions, mobile cellular subscriptions, fixed broadband subscriptions, and internet usage) on energy consumption? Second, how does ICT development influence energy consumption in nations with different levels of economic development? Third, how does ICT development affect renewable and non-renewable energy consumption? Using the generalized method of moments (GMM) on the panel data of 132 countries, this study indicates that fixed telephone subscriptions, mobile cellular subscriptions, and internet usage have positive impacts on energy consumption, while fixed broadband subscriptions have negative impacts. However, when the panel was split, the analysis reveals that mobile cellular subscriptions and internet usage positively influence energy consumption in high-income countries, while the impact is negative in low and middle-income countries. Moreover, when energy consumption was disaggregated, the analysis reveals that ICT dimensions have positive effects on renewable energy consumption, whereas ICT dimensions (except for fixed telephone subscriptions) have negative effects on non-renewable energy consumption. This study implies that ICT development is a fundamental determinant of energy consumption. Based on the empirical outcomes, this study recommends some policy options.