Direct Effect and Spillover Effect of ICT on Electricity Consumption in China: Evidence from a Spatial Panel Analysis

Abstract

The extensive use of information and communication technologies (ICT) has facilitated people's lives and promoted the improvement of productivity. In the meantime, ICT has a profound effect on the efficiency of electricity utilization and the demand for electricity. The existing studies consider the direct effect of ICT on electricity consumption (EC) but neglect the spillover effect of ICT on EC and their action channels. Under the assumption of cross-section dependence, this paper introduces spatial modeling techniques to confirm the positive direct effect and negative spillover effect of ICT on EC. The positive direct effects and negative spillover effects of information technology on EC are similar to those of the communication technology, and the absolute value of the former is also greater than the latter. Additionally, the results of meditation effect modeling also confirm that there exists an incomplete mediating effect in the process of the ICT affecting EC through the channels of economic growth and the adjustment of the industrial structure. This study provides freshly empirical evidence for people to better understand the role of ICT in EC and opens fresh insights for policymakers to make corresponding policy adjustments.