The Role of Financial Development in the Impact of ICT on Energy Consumption: A Comparison of Developed and Developing Countries

Articles in Press

Document Type : Original Article

Authors

1 Department of Theoretical Economics, University of Mazandaran

2 Associate Professor of Economics, Department of Theoretical Economics, Faculty of Economic and Administrative Sciences, University of Mazandaran, Babolsar, Iran,

3 M.A. in Economics, Faculty of Economic and Administrative Sciences, University of Mazandaran, ,

10.22080/jeem.2026.30611.1037

Abstract

The aim of this study is to investigate the role of Information and Communication Technology (ICT) in the impact of financial development on energy consumption in 41 selected countries (including 19 developed countries and 22 developing countries) during the period 2000 to 2021. For this purpose, panel data and the FGLS method were used. The research variables are Energy Consumption, ICT, Financial Development, Energy Price, Economic Growth and GDP per capita. The results showed that in the selected countries, ICT has a positive effect on energy consumption and financial development strengthens the size of this positive effect. Also, the intensity of the impact of ICT on energy consumption is greater in developed countries than in developing countries. Other findings show that economic growth and energy price have a positive effect and GDP per capita has a negative effect on energy consumption. Accordingly, policymakers should, while developing information technology infrastructure and deepening the financial system, strengthen frameworks for promoting energy efficiency and directing financial credits towards energy-efficient and green digital technologies to prevent the intensification of energy consumption in the process of digitalizing the economy.

Keywords

Main Subjects

Journal of Energy Economics Modeling

Articles in Press, Accepted Manuscript
Available Online from 26 February 2026

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History

  • Receive Date: 24 November 2025
  • Revise Date: 11 February 2026
  • Accept Date: 15 February 2026
  • Publish Date: 26 February 2026

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