Does Digitalization Reduce Electricity Consumption? Evidence from Spatial Analysis

Abstract

This survey addresses the issue of assessing and identifying the role of digital transformation in electrical energy consumption. It is shown that spatial effects in the level of electricity consumption among Russian regions are significant. The work is based on regional data for 2010-2018. Research methods: construction of the Moran and Geary indices, estimation of spatial regression panel models with fixed effects. The Implementation of digital technologies in Russia is at the initial stage, so their impact on energy consumption is ambiguous. The model with a spatial autoregressive lag revealed that the change (increase or decrease) of the electricity consumption level in the one region entails a change of energy consumption in other regions. Since the results indicate the importance of the spatial factor in electricity consumption, the government can implement a differentiated regional policy aimed at improving the efficiency of energy use in certain regions.Keywords: Spatial panel data models, electricity consumption, digital transformation, energy saving, Russian regionsJEL Classifications: O1, Q4, R1DOI: https://doi.org/10.32479/ijeep.10500