This paper analyzes the relationship between information and communication
technology (ICT) and energy demand. We construct a comprehensive cross-country
cross-industry panel data set covering 13 years, 10 OECD countries, and 27 industries.
Using up to 2889 country-industry observations, we find that: (1) ICT capital
is associated with a significant reduction in energy demand. (2) This relationship
differs with regard to different types of energy. ICT use is not significantly correlated
with electricity demand, but is significantly related to a reduction in non-electric energy
demand. That is, ICT use comes with a reduction in total energy demand and
an increase in the relative demand for electric over non-electric energy
