S-Space College of Engineering/Engineering Practice School (공과대학/대학원) Dept. of Industrial Engineering (산업공학과) Journal Papers (저널논문_산업공학과)
The impact of ICT investment and energy price on industrial electricity demand: Dynamic growth model approach
- Issue Date
- Energy Policy 35 (9), 4730-4738
- The authors investigate the effects of information and communications technology (ICT) investment, electricity price, and oil price on
the consumption of electricity in South Koreas industries using a logistic growth model. The concept electricity intensity is used to
explain electricity consumption patterns. An empirical analysis implies that ICT investment in manufacturing industries that normally
consume relatively large amounts of electricity promotes input factor substitution away from the labor intensive to the electricity
intensive. Moreover, results also suggest that ICT investment in some specific manufacturing sectors is conducive to the reduction of
electricity consumption, whereas ICT investment in the service sector and most manufacturing sectors increases electricity consumption.
It is concluded that electricity prices critically affect electricity consumption in half of South Koreas industrial sectors, but not in the
other half, a finding that differs somewhat from previous research results. Reasons are suggested to explain why the South Korean case is
so different. Policymakers may find this study useful, as it answers the question of whether ICT investment can ultimately reduce energy
consumption and may aid in planning the capacity of South Koreas national electric power.
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