The paradox of energy consumption decrease in the transition period towards a digital society

Abstract

The digital transformation era is in full motion, steadily making its way into common households, triggering changes in behavior as well as consumption patterns. While some changes can occur only within the context of the household mean income, such as the upgrade of appliances or devices, correlated with a personal preference in adopting such tools and technologies, there is one area that must keep with the pace of change, regardless of the household’s subjective criteria: energy consumption. The objective of this paper is to analyze the impact of digitalization on the household energy consumption, with the intent to understand trends, anticipate future changes as well as impact energy consumption efficiency. The results of the panel regressions based on the quantity of consumed energy and the popularity of several internet activities have revealed an inverse relation. The increased number of consumers doing certain internet activities such as: internet calling, reading online newspapers, activities on social media networks and uploading content online determine a lower energy consumption for that economy. There was no significant evidence for the relation between the energy consumption and internet activities such as: reading e-mails, searching for, doing internet banking and online purchases.