IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v286y2024ics0360544223029006.html
   My bibliography  Save this article

Exploring decoupling relationship between ICT investments and energy consumption in China's provinces: Factors and policy implications

Author

Listed:
  • Ge, Yihan
  • Yuan, Rong

Abstract

Prior studies on ICT and energy consumption in China lack exploration of the decoupling relationship and reasons and fail to propose policy implications for provinces based on energy and ICT investment features. We investigate the decoupling relationship between ICT investments and energy consumption in China's 30 provinces, exploring factors impacting decoupling using the Generalized Divisia Index Method decomposition analysis, including ICT investment scale, revenue scale, gross investment scale, energy intensity of ICT investment scale, energy intensity of ICT revenue, energy intensity of gross investment, ICT investment structure, and efficiency. We find most Chinese provinces showed weak decoupling between energy consumption and ICT investment from 2006 to 2020, except for Beijing, Tianjin, Sichuan, and Hubei which achieved strong decoupling during the 13th Five-Year-Plan period. In many provinces, ICT investment, ICT revenue, and gross fixed asset investment led to an increase in the decoupling index, but energy intensities of these factors were found to significantly reduce the decoupling index. Furthermore, we use K-Means clustering to classify China's provinces based on four ICT-related factors and propose targeted energy-saving policies for each cluster, considering their respective ICT investment characteristics.

Suggested Citation

  • Ge, Yihan & Yuan, Rong, 2024. "Exploring decoupling relationship between ICT investments and energy consumption in China's provinces: Factors and policy implications," Energy, Elsevier, vol. 286(C).
    • Handle: RePEc:eee:energy:v:286:y:2024:i:c:s0360544223029006
    DOI: 10.1016/j.energy.2023.129506
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223029006
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.129506?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Achour, Houda & Belloumi, Mounir, 2016. "Decomposing the influencing factors of energy consumption in Tunisian transportation sector using the LMDI method," Transport Policy, Elsevier, vol. 52(C), pages 64-71.
    2. Jiang, Shan & Zhu, Yongnan & He, Guohua & Wang, Qingming & Lu, Yajing, 2020. "Factors influencing China’s non-residential power consumption: Estimation using the Kaya–LMDI methods," Energy, Elsevier, vol. 201(C).
    3. Zhao, Xingrong & Zhang, Xi & Shao, Shuai, 2016. "Decoupling CO2 emissions and industrial growth in China over 1993–2013: The role of investment," Energy Economics, Elsevier, vol. 60(C), pages 275-292.
    4. Zhong, Mei-Rui & Cao, Meng-Yuan & Zou, Han, 2022. "The carbon reduction effect of ICT: A perspective of factor substitution," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    5. Zhang, Qi & Wu, Xifeng & Chen, Yu, 2022. "Is economic crisis an opportunity for realizing the low-carbon transition? A simulation study on the interaction between economic cycle and energy regulation policy," Energy Policy, Elsevier, vol. 168(C).
    6. Sawng, Yeong-wha & Kim, Pang-ryong & Park, JiYoung, 2021. "ICT investment and GDP growth: Causality analysis for the case of Korea," Telecommunications Policy, Elsevier, vol. 45(7).
    7. Zheng, Hongmei & Li, Aimin & Meng, Fanxin & Liu, Gengyuan, 2020. "Energy flows embodied in China's interregional trade: Case study of Hebei Province," Ecological Modelling, Elsevier, vol. 428(C).
    8. Cho, Youngsang & Lee, Jongsu & Kim, Tai-Yoo, 2007. "The impact of ICT investment and energy price on industrial electricity demand: Dynamic growth model approach," Energy Policy, Elsevier, vol. 35(9), pages 4730-4738, September.
    9. Lin Zhang and Philip Kofi Adom, 2018. "Energy Efficiency Transitions in China: How Persistent are the Movements to/from the Frontier?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    10. Chong, ChinHao & Liu, Pei & Ma, Linwei & Li, Zheng & Ni, Weidou & Li, Xu & Song, Shizhong, 2017. "LMDI decomposition of energy consumption in Guangdong Province, China, based on an energy allocation diagram," Energy, Elsevier, vol. 133(C), pages 525-544.
    11. Tapio, Petri, 2005. "Towards a theory of decoupling: degrees of decoupling in the EU and the case of road traffic in Finland between 1970 and 2001," Transport Policy, Elsevier, vol. 12(2), pages 137-151, March.
    12. Li, Qing & Wu, Yanrui, 2020. "Intangible capital, ICT and sector growth in China," Telecommunications Policy, Elsevier, vol. 44(1).
    13. Ma, Chunbo, 2014. "A multi-fuel, multi-sector and multi-region approach to index decomposition: An application to China's energy consumption 1995–2010," Energy Economics, Elsevier, vol. 42(C), pages 9-16.
    14. Dzator, Janet & Acheampong, Alex O. & Appiah-Otoo, Isaac & Dzator, Michael, 2023. "Leveraging digital technology for development: Does ICT contribute to poverty reduction?," Telecommunications Policy, Elsevier, vol. 47(4).
    15. Edquist, Harald & Henrekson, Magnus, 2017. "Swedish lessons: How important are ICT and R&D to economic growth?," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 1-12.
    16. Seo, Hwan-Joo & Lee, Young Soo & Oh, Jeong Hun, 2009. "Does ICT investment widen the growth gap?," Telecommunications Policy, Elsevier, vol. 33(8), pages 422-431, September.
    17. Bano, Sadia & Liu, Lu & Khan, Anwar, 2022. "Dynamic influence of aging, industrial innovations, and ICT on tourism development and renewable energy consumption in BRICS economies," Renewable Energy, Elsevier, vol. 192(C), pages 431-442.
    18. Zhang, Xiaomei & Su, Bin & Yang, Jun & Cong, Jianhui, 2022. "Analysis of Shanxi Province's energy consumption and intensity using input-output framework (2002–2017)," Energy, Elsevier, vol. 250(C).
    19. Rickard, Amelia & Wagner, Jeffrey & Schull, Jonathan, 2017. "Observations on the technology and economics of digital emissions," Technology in Society, Elsevier, vol. 48(C), pages 28-32.
    20. Jung Wan Lee & Tantatape Brahmasrene, 2014. "ICT, CO 2 Emissions and Economic Growth: Evidence from a Panel of ASEAN," Global Economic Review, Taylor & Francis Journals, vol. 43(2), pages 93-109, June.
    21. Wang, Jianda & Dong, Kangyin & Hochman, Gal & Timilsina, Govinda R., 2023. "Factors driving aggregate service sector energy intensities in Asia and Eastern Europe: A LMDI analysis," Energy Policy, Elsevier, vol. 172(C).
    22. Yu, Yang & Li, Shuangqi & Sun, Huaping & Taghizadeh-Hesary, Farhad, 2021. "Energy carbon emission reduction of China’s transportation sector: An input–output approach," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 378-393.
    23. Cheng, Shulei & Fan, Wei & Zhang, Jian & Wang, Ning & Meng, Fanxin & Liu, Gengyuan, 2021. "Multi-sectoral determinants of carbon emission inequality in Chinese clustering cities," Energy, Elsevier, vol. 214(C).
    24. Wang, Jianda & Wang, Bo & Dong, Kangyin & Dong, Xiucheng, 2022. "How does the digital economy improve high-quality energy development? The case of China," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    25. Nair, Mahendhiran & Pradhan, Rudra P. & Arvin, Mak B., 2020. "Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries," Technology in Society, Elsevier, vol. 62(C).
    26. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei, 2018. "How does information and communication technology affect China's energy intensity? A three-tier structural decomposition analysis," Energy, Elsevier, vol. 151(C), pages 748-759.
    27. Pieri, Fabio & Vecchi, Michela & Venturini, Francesco, 2018. "Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach," Research Policy, Elsevier, vol. 47(9), pages 1842-1852.
    28. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How does ICT agglomeration affect carbon emissions? The case of Yangtze River Delta urban agglomeration in China," Energy Economics, Elsevier, vol. 111(C).
    29. Wang, Jianda & Jiang, Qingzhe & Dong, Xiucheng & Dong, Kangyin, 2021. "Decoupling and decomposition analysis of investments and CO2 emissions in information and communication technology sector," Applied Energy, Elsevier, vol. 302(C).
    30. Chong, Chin Hao & Tan, Wei Xin & Ting, Zhao Jia & Liu, Pei & Ma, Linwei & Li, Zheng & Ni, Weidou, 2019. "The driving factors of energy-related CO2 emission growth in Malaysia: The LMDI decomposition method based on energy allocation analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    31. Chang, Lei & Shi, Fanglan & Taghizadeh-Hesary, Farhad & Saydaliev, Hayot Berk, 2023. "Information and communication technologies development and the resource curse," Resources Policy, Elsevier, vol. 80(C).
    32. Huang, Ren & Zhang, Sufang & Wang, Peng, 2022. "Key areas and pathways for carbon emissions reduction in Beijing for the “Dual Carbon” targets," Energy Policy, Elsevier, vol. 164(C).
    33. Wimmer, Lorenz & Kluge, Jan & Zenz, Hannes & Kimmich, Christian, 2023. "Predicting structural changes of the energy sector in an input–output framework," Energy, Elsevier, vol. 265(C).
    34. Zhang, Wei & Wang, Nan, 2021. "Decomposition of energy intensity in Chinese industries using an extended LMDI method of production element endowment," Energy, Elsevier, vol. 221(C).
    35. Xue, Ruoyu & Wang, Shanshan & Long, Wenqi & Gao, Gengyu & Liu, Donghui & Zhang, Ruiqin, 2021. "Uncovering GHG emission characteristics of industrial parks in Central China via emission inventory and cluster analysis," Energy Policy, Elsevier, vol. 151(C).
    36. Niu, Meng & Wang, Zhenguo & Zhang, Yabin, 2022. "How information and communication technology drives (routine and non-routine) jobs: Structural path and decomposition analysis for China," Telecommunications Policy, Elsevier, vol. 46(1).
    37. Dong, Kangyin & Ren, Xiaohang & Zhao, Jun, 2021. "How does low-carbon energy transition alleviate energy poverty in China? A nonparametric panel causality analysis," Energy Economics, Elsevier, vol. 103(C).
    38. Stamopoulos, Dimitrios & Dimas, Petros & Tsakanikas, Aggelos, 2022. "Exploring the structural effects of the ICT sector in the Greek economy: A quantitative approach based on input-output and network analysis," Telecommunications Policy, Elsevier, vol. 46(7).
    39. Guo, Qingbin & Wang, Yong & Dong, Xiaobin, 2022. "Effects of smart city construction on energy saving and CO2 emission reduction: Evidence from China," Applied Energy, Elsevier, vol. 313(C).
    40. Xu, Qingyang & Sun, Feihu & Cai, Qiran & Liu, Li-Jing & Zhang, Kun & Liang, Qiao-Mei, 2022. "Assessment of the influence of demand-side responses on high-proportion renewable energy system: An evidence of Qinghai, China," Renewable Energy, Elsevier, vol. 190(C), pages 945-958.
    41. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei & Su, Bin, 2019. "How information and communication technology drives carbon emissions: A sector-level analysis for China," Energy Economics, Elsevier, vol. 81(C), pages 380-392.
    42. Hong, Jae-pyo, 2017. "Causal relationship between ICT R&D investment and economic growth in Korea," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 70-75.
    43. Wang, Xiong & Wang, Xiao & Ren, Xiaohang & Wen, Fenghua, 2022. "Can digital financial inclusion affect CO2 emissions of China at the prefecture level? Evidence from a spatial econometric approach," Energy Economics, Elsevier, vol. 109(C).
    44. Wang, Di & Zhou, Tao & Wang, Mengmeng, 2021. "Information and communication technology (ICT), digital divide and urbanization: Evidence from Chinese cities," Technology in Society, Elsevier, vol. 64(C).
    45. Wang, Qingxi & Hu, An & Tian, Zhihua, 2022. "Digital transformation and electricity consumption: Evidence from the Broadband China pilot policy," Energy Economics, Elsevier, vol. 115(C).
    46. Xue, Yan & Tang, Chang & Wu, Haitao & Liu, Jianmin & Hao, Yu, 2022. "The emerging driving force of energy consumption in China: Does digital economy development matter?," Energy Policy, Elsevier, vol. 165(C).
    47. Zhang, Chuanguo & Liu, Cong, 2015. "The impact of ICT industry on CO2 emissions: A regional analysis in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 12-19.
    48. Adele Parmentola & Antonella Petrillo & Ilaria Tutore & Fabio De Felice, 2022. "Is blockchain able to enhance environmental sustainability? A systematic review and research agenda from the perspective of Sustainable Development Goals (SDGs)," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 194-217, January.
    49. PU, Zhengning & FEI, Jinhua, 2022. "The impact of digital finance on residential carbon emissions: Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 515-527.
    50. Boqiang Lin, & Wang, Miao, 2019. "Possibilities of decoupling for China’s energy consumption from economic growth: A temporal-spatial analysis," Energy, Elsevier, vol. 185(C), pages 951-960.
    51. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    52. Jorgenson, Dale W. & Vu, Khuong M., 2016. "The ICT revolution, world economic growth, and policy issues," Telecommunications Policy, Elsevier, vol. 40(5), pages 383-397.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Zhouyi & Song, Yi & Cheng, Jinhua & Zhang, Yijun, 2023. "Effects of heterogeneous ICT on critical metal supply: A differentiated perspective on primary and secondary supply," Resources Policy, Elsevier, vol. 83(C).
    2. Wang, Jianda & Dong, Xiucheng & Dong, Kangyin, 2022. "How digital industries affect China's carbon emissions? Analysis of the direct and indirect structural effects," Technology in Society, Elsevier, vol. 68(C).
    3. Charfeddine, Lanouar & Umlai, Mohamed, 2023. "ICT sector, digitization and environmental sustainability: A systematic review of the literature from 2000 to 2022," Renewable and Sustainable Energy Reviews, Elsevier, vol. 184(C).
    4. Sun, Xianming & Xiao, Shiyi & Ren, Xiaohang & Xu, Bing, 2023. "Time-varying impact of information and communication technology on carbon emissions," Energy Economics, Elsevier, vol. 118(C).
    5. Wang, Lei & Chen, Yangyang & Ramsey, Thomas Stephen & Hewings, Geoffrey J.D., 2021. "Will researching digital technology really empower green development?," Technology in Society, Elsevier, vol. 66(C).
    6. Wang, Jen Chun, 2022. "Understanding the energy consumption of information and communications equipment: A case study of schools in Taiwan," Energy, Elsevier, vol. 249(C).
    7. Usman, Ahmed & Ozturk, Ilhan & Ullah, Sana & Hassan, Ali, 2021. "Does ICT have symmetric or asymmetric effects on CO2 emissions? Evidence from selected Asian economies," Technology in Society, Elsevier, vol. 67(C).
    8. Yang, Jun & Yang, Dingjian & Cheng, Jixin, 2024. "The non-rivalry of data, directed technical change and the environment: A theoretical study incorporating data as a production factor," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 417-448.
    9. Boqiang Lin, & Wang, Miao, 2019. "Possibilities of decoupling for China’s energy consumption from economic growth: A temporal-spatial analysis," Energy, Elsevier, vol. 185(C), pages 951-960.
    10. Sun, Hongye & Kim, Giseung, 2021. "The composite impact of ICT industry on lowering carbon intensity: From the perspective of regional heterogeneity," Technology in Society, Elsevier, vol. 66(C).
    11. Zhong Ren & Jie Zhang, 2023. "Digital Economy, Clean Energy Consumption, and High-Quality Economic Development: The Case of China," Sustainability, MDPI, vol. 15(18), pages 1-24, September.
    12. Dehghan Shabani, Zahra & Shahnazi, Rouhollah, 2019. "Energy consumption, carbon dioxide emissions, information and communications technology, and gross domestic product in Iranian economic sectors: A panel causality analysis," Energy, Elsevier, vol. 169(C), pages 1064-1078.
    13. Magazzino, Cosimo & Mele, Marco & Morelli, Giovanna & Schneider, Nicolas, 2021. "The nexus between information technology and environmental pollution: Application of a new machine learning algorithm to OECD countries," Utilities Policy, Elsevier, vol. 72(C).
    14. Yi, Jiahui & Dai, Sheng & Li, Lin & Cheng, Jinhua, 2024. "How does digital economy development affect renewable energy innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    15. Wang, Jianda & Dong, Kangyin & Dong, Xiucheng & Taghizadeh-Hesary, Farhad, 2022. "Assessing the digital economy and its carbon-mitigation effects: The case of China," Energy Economics, Elsevier, vol. 113(C).
    16. Tang, Chang & Xue, Yan & Wu, Haitao & Irfan, Muhammad & Hao, Yu, 2022. "How does telecommunications infrastructure affect eco-efficiency? Evidence from a quasi-natural experiment in China," Technology in Society, Elsevier, vol. 69(C).
    17. Sun, Ya-Fang & Yu, Shiwei & Zhang, Yue-Jun & Su, Bin, 2023. "How do imports change the energy consumption of China? An analysis of its role in intermediate inputs and final demands," Energy, Elsevier, vol. 270(C).
    18. Kunkel, S. & Neuhäusler, P. & Matthess, M. & Dachrodt, M.F., 2023. "Industry 4.0 and energy in manufacturing sectors in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 188(C).
    19. Junhong Qu & Xiaoli Hao, 2022. "Digital Economy, Financial Development, and Energy Poverty Based on Mediating Effects and a Spatial Autocorrelation Model," Sustainability, MDPI, vol. 14(15), pages 1-24, July.
    20. Nuri Rosmika & Raja Masbar & Sofyan Syahnur & Suriani Suriani, 2022. "The Impact of the Information and Communication Technology and Electricity on Inter-island Interactions in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 568-574, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:286:y:2024:i:c:s0360544223029006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.