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The Impact of Information and Communication Technology and Financial Development on Energy Consumption: A Dynamic Heterogeneous Panel Analysis for MENA Countries

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  • Amal Dabbous

    (Business and Management School, Saint-Joseph University, Lebanon.)

Abstract

This study investigates the impact of information and communication technology (ICT) and financial development on energy consumption for a panel of 11 MENA countries, for the period between 1995 and 2014. Unlike previous studies, this study uses principal component analysis to construct an index for ICT. In addition, the dynamic panel data model is estimated using heterogeneous panel estimation technique that accounts for cross-sectional dependence. The results reveal that there is a positive statistical significant relationship between ICT index and energy consumption. However, financial development did not appear to have an impact on energy consumption. We conclude that while ICT use increases energy consumption, financial markets development did not contribute to the increase in energy consumption. Finally, some policy implications relevant to our empirical results are discussed such as the need for policy makers to formulate appropriate and effective energy conservation policies, as well as to encourage the adoption of more energy saving devices that accompany the increase in the use of ICT in the MENA region.

Suggested Citation

  • Amal Dabbous, 2018. "The Impact of Information and Communication Technology and Financial Development on Energy Consumption: A Dynamic Heterogeneous Panel Analysis for MENA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 70-76.
    • Handle: RePEc:eco:journ2:2018-04-9
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    Cited by:

    1. Kunofiwa Tsaurai, 2020. "Information and Communication Technology, Energy Consumption and Financial Development in Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 10(3), pages 429-437.
    2. Noubissi Domguia, Edmond & Asongu, Simplice, 2022. "ICT and agriculture in Sub-Saharan Africa: effects and transmission channels," MPRA Paper 119055, University Library of Munich, Germany.
    3. Bruno Emmanuel Ongo Nkoa & Jacques Simon Song, 2022. "Les canaux de transmission des effets des TIC sur la mobilisation des recettes fiscales en Afrique," African Development Review, African Development Bank, vol. 34(S1), pages 80-101, July.
    4. Avom, Désiré & Nkengfack, Hilaire & Fotio, Hervé Kaffo & Totouom, Armand, 2020. "ICT and environmental quality in Sub-Saharan Africa: Effects and transmission channels," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    5. Xie, Xin & Liu, Yufeng & Jiang, Xiaoxi & Wang, Zi Xuan, 2024. "Natural resources utilization, ICT growth, and renewable energy consumption: Pathways to sustainable development in China," Resources Policy, Elsevier, vol. 89(C).

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    More about this item

    Keywords

    ICT; Financial Development; Energy Consumption; MENA Countries.;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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