Using ICT Goes Hand in Hand with Decreasing Energy Consumption

In OECD countries, the spread of information and communication technologies (ICT) goes hand in hand with a reduction of energy consumption. Comparing the manufacturing and service sectors, it becomes apparent that in the manufacturing sector, using ICT is linked to reduced energy consumption. By contrast, no such correlation could be established in the service sector.

This is the result of a study conducted by the Centre for European Economic Research (ZEW) in Mannheim. The study is based on data collected from 27 sectors in ten OECD countries for 13 years. These data originate from the World Input-Output Database, EU KLEMS database and the International Energy Agency. They contain information on several aspects: the use of energy in individual manufacturing and services sectors, the use of different ICT goods, energy prices and other drivers of energy consumption.

The study distinguishes between electrical and non-electrical energy such as coal, oil and diesel. In terms of electrical energy, no link between the use of ICT and energy consumption could be established. One possible reason might be that using ICT, such as computers, additional equipment, and communication devices, involves the direct consumption of electrical energy, which counteracts possible saving effects. ZEW observed that energy savings based on the use of ICT were related exclusively to non-electrical energy savings. ICT contributes for instance to monitoring, controlling, and optimising industrial processes. Furthermore, ICT enable companies to replace physical, energy-intensive processes like business trips with virtual, less energy-intensive procedures such as videoconferences.

Even if the study’s findings do not allow for any statement on causality, it can be stated that there is a close link between the use of ICT and energy consumption on sectoral levels.

For further information please contact

Patrick Schulte, phone +49 (0)621/1235-353,e-mail schulte@zew.de

Sascha Rexhäuser, phone +49 (0)621/1235-353,e-mail rexhaeuser@zew.de