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The Role of Information Communication Technology and Economic Growth in Recent Electricity Demand: Fresh Evidence from Combine Cointegration Approach in UAE

Authors: Shahbaz, Muhammad; Rehman, Ijaz Ur; Sbia, Rashid; Hamdi, Helmi;

The Role of Information Communication Technology and Economic Growth in Recent Electricity Demand: Fresh Evidence from Combine Cointegration Approach in UAE

Abstract

This paper investigates the relationship among information communication technology (ICT), economic growth, and electricity consumption in the case of the UAE. The study covers the period of 1975–2011. We have tested the unit root properties of the variables and applied the Bayer-Hanck combined cointegration approach for the long-term relationship. The innovative accounting approach is applied to test the robustness of the VECM Granger causality findings. Our empirical results confirm the existence of the cointegration between the series. We find that ICT increases electricity demand but electricity prices lower it. Income growth increases electricity consumption. The nonlinear relationship between ICT and electricity consumption is an inverted U-shaped. The causality results reveal that ICT and electricity price Granger cause electricity demand. The feedback effect exists between economic growth and electricity consumption. This paper provides new insights to policy makers in designing a comprehensive energy and ICT policy to sustain economic growth for long span of time, although the feedback effect between economic growth and electricity consumption encourages in continuing electricity supply policies.

Countries
Belgium, France
Keywords

ICT, Growth, Electricity, UAE, [SHS.ECO]Humanities and Social Sciences/Economies and finances, Informatique appliquée logiciel, Growth, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Electricity, UAE, ICT, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, jel: jel:O3

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    This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    29
    popularity
    This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
    Top 10%
    impulse
    This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
    Top 10%
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
29
Top 10%
Top 10%
Top 10%
Green
bronze