ICT, carbon emissions, climate change, and energy demand nexus: the potential benefit of digitalization in Taiwan

Rishan Adha, Cheng-Yih Hong, Somya Agrawal and Li-Hua Li

MPRA Paper from University Library of Munich, Germany

Abstract: The global rise in energy consumption makes managing energy demands a priority. Here, the potential of Information and Communication Technology (ICT) in controlling energy consumption is still debated. Within this context, the main objective of the current study is to measure the impact of ICT, its potential benefit, and environmental factors on household electricity demand in Taiwan. A panel of data from 20 cities in Taiwan was collected during the period 2004-2018. We adopted PMG estimation and applied the DH-causality test for analysis. The estimation results show that ICT, carbon emissions, and climate change will drive household electricity demand in Taiwan in the long term. However, ICT has a higher potential to reduce electricity demand in the short-term period. In addition, the results of the causality test reveal a two-way interrelationship between ICT and electricity demand. Our study also found that climate change indirectly affects the use of electricity through household appliances. We also presented several policy implications at the end of this paper.

Keywords: energy demand; ICT; carbon emissions; climate change; dynamic panel data model (search for similar items in EconPapers)
JEL-codes: C3 C33 Q4 Q43 (search for similar items in EconPapers)
Date: 2021-10-26, Revised 2022-02-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-ict
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: ICT, carbon emissions, climate change, and energy demand nexus: The potential benefit of digitalization in Taiwan (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:113009

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