This study investigates the effect of ICT (Information and Communication Technology) industry development on the energy consumption of different kinds of industries in Taiwan. Based on the annual data ranging from 1982 to 2011, this study uses panel data and robust analysis to analyze the energy consumption of energy, electricity, diesel, fuel oil and natural gas.
The empirical results show that all the explanatory variables of real GDP per capita, energy intensity, Consumer Price Index and manufacture index have positive effect on the industrial energy consumption. While, the impacts from those ICT explanatory variables depend on the types of ICT. More of the production value of two types of ICT industries (i.e. electronic component industry and information industry) will increase energy consumption since these two ICT industries focus more
on the ICT production, which need to use lots of energy for production. While, more of the production values of the computer, electronic products, optical products manufacturing, and the telecommunications industry would decrease the energy consumption since the production increase of these industries would enhance more energy conservation activities. Finally, most prices of energy have negative impacts on the industrial energy consumption. This empirical result implies that the industrial sector will use less energy when confronting a higher energy price.
From this study, it is known that some ICT industries can reduce the energy consumption in efficacy, especially for the computer, electronic products, optical products manufacturing, and the telecommunications industry. More production value of these ICT industries will help the energy consumption cut. It is suggested that the Government should put more effort to capture the contribution of energy conservation and carbon cut from these industry and try to extend their contribution.