IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i9p3926-d1140608.html
   My bibliography  Save this article

The Impact of ICT Capital Services on Economic Growth and Energy Efficiency in China

Author

Listed:
  • Huifang E

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China
    School of Statistics and Mathematics, Inner Mongolia University of Finance and Economics, Hohhot 010070, China)

  • Shuangjie Li

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

  • Liming Wang

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China
    Irish Institute for Chinese Studies, University College Dublin, D04 V1W8 Dublin, Ireland)

  • Huidan Xue

    (School of Economics and Management, Beijing University of Technology, Beijing 100124, China)

Abstract

This study aims to investigate the impact of ICT capital services on economic growth and energy efficiency in China at both national and industrial levels during the period 2000–2020. To achieve this aim, this study introduces a measurement method for capital services, explores ICT’s contributions to economic growth, and analyzes the impact of ICT on energy efficiency. The empirical results of this study indicate that although the ICT capital services scale is relatively small, accounting for only 8.87% of the total in 2020, its growth rate is faster than that of non-ICT capital services, and the distribution of ICT capital services varies widely among different industries. Additionally, based on the economic growth decomposition framework, this study finds that the contribution of ICT capital services to economic growth is 6.95% on average. It is significantly higher in certain industries, such as Financial industry; Information transmission, software and information technology services; Construction; and Manufacturing compared to others. The total factor energy efficiency ( TFEE ) reveals that industries with higher energy consumption have lower energy efficiency, while the panel regression model illustrates that the development of ICT has a positive impact on improving energy efficiency, with variability across industries. Overall, the findings of this study provide crucial scientific evidence and policy implications for promoting the development of ICT and integrating it with various industries, which can significantly contribute to boosting economic growth and energy efficiency.

Suggested Citation

  • Huifang E & Shuangjie Li & Liming Wang & Huidan Xue, 2023. "The Impact of ICT Capital Services on Economic Growth and Energy Efficiency in China," Energies, MDPI, vol. 16(9), pages 1-21, May.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3926-:d:1140608
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/9/3926/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/9/3926/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Stephen D. Oliner & Daniel E. Sichel, 2000. "The Resurgence of Growth in the Late 1990s: Is Information Technology the Story?," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 3-22, Fall.
    2. Yao, Meifang & Di, He & Zheng, Xianrong & Xu, Xiaobo, 2018. "Impact of payment technology innovations on the traditional financial industry: A focus on China," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 199-207.
    3. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    4. George Tsachtsiris & Anastasios Magoutas & Theodore Papadogonas, 2022. "ICT and Economic Growth in EU: A macro Level Comparison of Estimated ICT Output Elasticities," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 25(3), pages 202-216, July.
    5. Appiah-Otoo, Isaac & Song, Na, 2021. "The impact of ICT on economic growth-Comparing rich and poor countries," Telecommunications Policy, Elsevier, vol. 45(2).
    6. Dale W. Jorgenson & Khuong Vu, 2005. "Information technology and the world economy," Proceedings, Federal Reserve Bank of San Francisco.
    7. Xu, Mengmeng & Lin, Boqiang & Wang, Siquan, 2021. "Towards energy conservation by improving energy efficiency? Evidence from China’s metallurgical industry," Energy, Elsevier, vol. 216(C).
    8. Jiban Khuntia & Terence J. V. Saldanha & Sunil Mithas & V. Sambamurthy, 2018. "Information Technology and Sustainability: Evidence from an Emerging Economy," Production and Operations Management, Production and Operations Management Society, vol. 27(4), pages 756-773, April.
    9. 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.
    10. Zuo, Dajie & Liang, Qichen & Zhan, Shuguang & Huang, Wencheng & Yang, Shenglan & Wang, Mengyun, 2023. "Using energy consumption constraints to control the freight transportation structure in China (2021–2030)," Energy, Elsevier, vol. 262(PB).
    11. 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).
    12. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," Higher School of Economics Economic Journal Экономический журнал Высшей школы экономики, CyberLeninka;Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики», vol. 5(1), pages 3-34.
    13. Sun, Yunpeng & Ajaz, Tahseen & Razzaq, Asif, 2022. "How infrastructure development and technical efficiency change caused resources consumption in BRICS countries: Analysis based on energy, transport, ICT, and financial infrastructure indices," Resources Policy, Elsevier, vol. 79(C).
    14. Hulten, Charles R, 1973. "Divisia Index Numbers," Econometrica, Econometric Society, vol. 41(6), pages 1017-1025, November.
    15. Gao, Da & Li, Ge & Yu, Jiyu, 2022. "Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities," Energy, Elsevier, vol. 247(C).
    16. Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
    17. Patrick Schulte & Heinz Welsch & Sascha Rexhäuser, 2016. "ICT and the Demand for Energy: Evidence from OECD Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(1), pages 119-146, January.
    18. Hao Lu & Qin Zhang & Qinghong Cui & Yuanyuan Luo & Pardis Pishdad-Bozorgi & Xiancun Hu, 2021. "How Can Information Technology Use Improve Construction Labor Productivity? An Empirical Analysis from China," Sustainability, MDPI, vol. 13(10), pages 1-13, May.
    19. Shuangjie Li & Hongyu Diao & Liming Wang & Chunqi Li, 2021. "Energy Efficiency Measurement: A VO TFEE Approach and Its Application," Sustainability, MDPI, vol. 13(4), pages 1-18, February.
    20. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    21. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    22. Lange, Steffen & Pohl, Johanna & Santarius, Tilman, 2020. "Digitalization and energy consumption. Does ICT reduce energy demand?," Ecological Economics, Elsevier, vol. 176(C).
    23. Olha Popelo & Maksym Dubyna & Nataliia Kholiavko, 2021. "World Experience In The Introduction Of Modern Innovation And Information Technologies In The Functioning Of Financial Institutions," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 7(2).
    24. Vu, Khuong M., 2013. "Information and Communication Technology (ICT) and Singapore’s economic growth," Information Economics and Policy, Elsevier, vol. 25(4), pages 284-300.
    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. Jin, Canyang & Xu, Aiting & Zhu, Yuhan & Li, Jinchang, 2023. "Technology growth in the digital age: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    3. Marquis, Milton H. & Trehan, Bharat, 2008. "On using relative prices to measure capital-specific technological progress," Journal of Macroeconomics, Elsevier, vol. 30(4), pages 1390-1406, December.
    4. 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).
    5. Xu, Qiong & Zhong, Meirui & Li, Xin, 2022. "How does digitalization affect energy? International evidence," Energy Economics, Elsevier, vol. 107(C).
    6. Lin, Boqiang & Huang, Chenchen, 2023. "Nonlinear relationship between digitization and energy efficiency: Evidence from transnational panel data," Energy, Elsevier, vol. 276(C).
    7. Yin, Zi Hui & Zeng, Wei Ping, 2023. "The effects of industrial intelligence on China's energy intensity: The role of technology absorptive capacity," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    8. Gao, Da & Li, Ge & Yu, Jiyu, 2022. "Does digitization improve green total factor energy efficiency? Evidence from Chinese 213 cities," Energy, Elsevier, vol. 247(C).
    9. 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).
    10. Carmen Díaz-Roldán & María del Carmen Ramos-Herrera, 2021. "Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?," Energies, MDPI, vol. 14(5), pages 1-17, March.
    11. Francesco Venturini, 2009. "The long-run impact of ICT," Empirical Economics, Springer, vol. 37(3), pages 497-515, December.
    12. Dale W. Jorgenson, 2007. "Information Technology and the G7 Economies," NBER Chapters, in: Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, pages 325-350, National Bureau of Economic Research, Inc.
    13. Da Gao & Chang Liu & Xinyan Wei & Yang Liu, 2023. "Can River Chief System Policy Improve Enterprises’ Energy Efficiency? Evidence from China," IJERPH, MDPI, vol. 20(4), pages 1-17, February.
    14. Wang, Lan-Hsun & Liao, Shu-Yi & Huang, Mao-Lung, 2022. "The growth effects of knowledge-based technological change on Taiwan’s industry: A comparison of R&D and education level," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 525-545.
    15. Bo Li & Jing Liu & Qian Liu & Muhammad Mohiuddin, 2022. "The Effects of Broadband Infrastructure on Carbon Emission Efficiency of Resource-Based Cities in China: A Quasi-Natural Experiment from the “Broadband China” Pilot Policy," IJERPH, MDPI, vol. 19(11), pages 1-27, May.
    16. 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.
    17. Wang, Xipan & Song, Junnian & Xing, Jiahao & Duan, Haiyan & Wang, Xian'en, 2022. "System nexus consolidates coupling of regional water and energy efficiencies," Energy, Elsevier, vol. 256(C).
    18. Zheming Yan & Rui Shi & Zhiming Yang, 2018. "ICT Development and Sustainable Energy Consumption: A Perspective of Energy Productivity," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    19. Dillip Kumar Das, 2019. "Exploring Perspectives of the Information Technology Industry in a South African City," Sustainability, MDPI, vol. 11(22), pages 1-34, November.
    20. Lee, Chien-Chiang & He, Zhi-Wen & Xiao, Fu, 2022. "How does information and communication technology affect renewable energy technology innovation? International evidence," Renewable Energy, Elsevier, vol. 200(C), pages 546-557.

    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:gam:jeners:v:16:y:2023:i:9:p:3926-:d:1140608. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.