The Econometric Modeling of the Relationship Between Digitalization and Demand for Energy

The goal of this study is to explore the relationship between digitalization and sustainable development. We focus on the links between Internet penetration and electricity consumption, using data for 173 countries for which complete data is available by World Bank for years 1990-2015. Using fixed effects regression method, we find that Internet has non-linear (inverted U-shape) relationship between ICT and energy use. The results remain robust for inclusion of control variables.

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