**How Does Information and Communication Technology Capital A** ff**ect Productivity in the Energy Sector? New Evidence from 14 Countries, Considering the Transition to Renewable Energy Systems**

### **Hidemichi Fujii 1,\*, Akihiko Shinozaki 1, Shigemi Kagawa 1 and Shunsuke Managi 2**


Received: 1 April 2019; Accepted: 7 May 2019; Published: 10 May 2019

**Abstract:** By focusing on a distributed energy system that has been widely di ffused for e fficient utilization of renewable energy generation in recent years, this paper investigates the relationship between productivity growth and information and communications technology capital in the energy sector. Information and communications technology is a key factor in operating distributed energy systems in a way that balances energy supply and demand in order to minimize energy loss and to enhance capacity utilization. The objective of this study is to clarify the determining factors that a ffect productivity growth, focusing on three di fferent information and communications technologies: information technology capital, communication technology capital and software capital. Our estimation sample covers energy sectors in 14 countries from 2000 to 2014. The results show that information technology and software capital contribute to increasing material productivity and capital productivity in the energy sector, respectively. Meanwhile, communication technology capital negatively a ffects these two productivity indicators.

**Keywords:** information and communications technology; productivity; renewable energy; energy sector; distributed energy system
