The impact of ICT investment on energy intensity across different regions of China

There are few empirical studies concerning the impact of information communication technology (ICT) on energy intensity in developing countries. We introduce an expanded STIRPAT model and China's provincial data samples during 2003–2012 to fill this gap. This paper applies the Driscoll–Kraay econometric method to assess the long-term impact of ICT investment on energy intensity and employs a panel error correction model to explore the short-term influence. The results indicate that the ICT investment significantly reduces energy intensity in the long-run, while it does not in the short-run at a nationwide level. Concerning the regional diversities of China, the impact of the ICT investment on energy intensity is significantly negative in western and central regions, while is insignificant in the eastern sample. Furthermore, the negative impact grows as the ICT investment increases in central provinces. Additionally, the short-term energy intensity reduction effect exists only in eastern regions, while it does not in central provinces. The ICT investment increases the energy intensity in the short-run in the western sample.