ICT and energy rebound effect: Empirical analysis based on data from Chinese cities

Area of Science:

• Environmental Economics
• Energy Policy
• Technological Innovation

Background:

• Information and Communication Technology (ICT) is a key driver of economic growth and a strategic emerging industry.
• Understanding the energy rebound effect (ERE) is crucial for energy conservation and policy-making.
• Integrating ICT into energy rebound analysis provides new insights into energy efficiency dynamics.

Purpose of the Study:

• To incorporate ICT into the energy rebound measurement framework.
• To measure the energy rebound effect (ERE) in Chinese cities using city-level data.
• To investigate the mechanisms through which ICT influences the ERE.

Main Methods:

• Utilized improved stochastic frontier analysis (SFA) model for energy consumption.
• Analyzed Chinese city-level data from 2006 to 2019 for 252 prefecture-level cities.
• Conducted robustness tests to validate findings on ICT's effect on ERE.

Main Results:

• The average ERE in China ranges from 0.4627 to 0.6458, with an overall average of 0.5532.
• Actual energy consumption reduction is only about 40% of the expected amount.
• ICT has a significant dampening effect on the ERE, reducing its magnitude.
• ERE exhibits a spatial imbalance, increasing from coastal to inland areas, with greater east-west variation.

Conclusions:

• ICT inclusion in the ERE framework reveals that ICT significantly dampens the energy rebound effect.
• ICT's impact on ERE is attributed to breaking down geographical/administrative barriers and reducing market segmentation.
• Findings underscore the complex relationship between technological advancement and energy efficiency, with implications for policy design.