The Effect of Information and Communication Technology on Electricity Intensity in Korea

Abstract

This study investigated the impact of information and communication technology (ICT) on electricity intensity, incorporating electricity prices, financial development, and population growth in Korea from 1990 to 2020, using the ARDL (autoregressive distributed lag) model. Three cases were considered, each relating to a different ICT proxy: Internet use, mobile cellular phone use, and exports of ICT-related products. The results varied depending on the proxy used to represent ICT. An increase in mobile cellular phone use leads to an increase in electricity intensity in the long run; however, the short-run effects of this change are unclear. An increase in Internet use also leads to an increase in electricity intensity in the long run but induces a decrease in electricity intensity in the short run. Increments in the exports of ICT-related products lead to an increase in electricity intensity in the short run; however, this effect is negligible in the long run. Electricity prices do not affect electricity intensity in all cases, and financial development reduces the intensity of electricity in the cases of the use of both mobile cellular phones and the Internet as proxies for ICT, whereas population growth increases electricity intensity in all cases.