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The Impact of ICT on Electricity and Energy Consumption and Resulting CO2 Emissions: A Literature Review

Author

Listed:
  • Wolfgang Briglauer
  • Monika Köppl-Turyna
  • Wolfgang Schwarzbauer
  • Virág Bittó

Abstract

Digitalization-related services and applications are based on the information and communications technology (ICT) ecosystem and today encompass nearly all areas of society and economic sectors. They have many opposing effects regarding energy and electricity consumption, on the one hand, and the corresponding CO2 emissions, on the other. Whereas direct effects are related to the production, operation, and disposal of ICT elements, which increases electricity consumption, the indirect effects related to the usage of ICT elements are ambiguous. Our analysis aims to inform policy decision-makers about the actual climate relevance of the ICT ecosystem by providing a comprehensive and structured review of the related streams of the literature. From our balanced reading of the related empirical literature, we infer that higher ICT intensity implies mixed results regarding electricity and energy consumption, but tends to lower CO2 emissions. The latter is particularly true for developed countries. Our main findings therefore suggest that ICT elements can give rise to positive environmental effects for society, particularly within developed countries where the usage of ICT elements is high.

Suggested Citation

  • Wolfgang Briglauer & Monika Köppl-Turyna & Wolfgang Schwarzbauer & Virág Bittó, 2023. "The Impact of ICT on Electricity and Energy Consumption and Resulting CO2 Emissions: A Literature Review," International Review of Environmental and Resource Economics, now publishers, vol. 17(2-3), pages 319–361-3, June.
    • Handle: RePEc:now:jirere:101.00000154
    DOI: 10.1561/101.00000154
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    Cited by:

    1. Briglauer, Wolfgang & Köppl-Turyna, Monika & Schwarzbauer, Wolfgang & Bittó, Virág, 2023. "Evaluating the effects of ICT core elements on CO2 emissions: Recent evidence from OECD countries," Telecommunications Policy, Elsevier, vol. 47(8).
    2. Edquist, Harald & Bergmark, Pernilla, 2024. "How is mobile broadband intensity affecting CO2 emissions? – A macro analysis," Telecommunications Policy, Elsevier, vol. 48(2).
    3. Xu, Haitao & Yang, Chengying & Li, Xuetao & Liu, Ruiyu & Zhang, Yonghong, 2024. "How do fintech, digitalization, green technologies influence sustainable environment in CIVETS nations? An evidence from CUP FM and CUP BC approaches," Resources Policy, Elsevier, vol. 92(C).

    More about this item

    Keywords

    ICT; CO2 emissions; electricity consumption; literature review;
    All these keywords.

    JEL classification:

    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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