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Economic Development and End-Use Energy Demand

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  • Kenneth B. Medlock III
  • Ronald Soligo

Abstract

We examine the relationship between economic development and energy demand. The paper identifies the development patterns that characterize particular economic sectors, and analyzes the effect of sector-specific energy demand growth rates on the composition of final energy demand. We also examine some of the associated policy implications. Industrial energy demand increases most rapidly at the initial stages of development, but growth slows steadily throughout the industrialization process. Energy demand for transportation rises steadily, and takes the majority share of total energy use at the latter stages of development. Energy demand originating from the residential and commercial sector also increases to surpass industrial demand, but long term growth is not as pronounced as it is in the transport sector. These results have implications for the primary energy demand of an economy as it develops, and thus, for domestic energy security and global geopolitical relationships.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume22 (2001)
Issue (Month): Number 2 ()
Pages: 77-105

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Handle: RePEc:aen:journl:2001v22-02-a04

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Cited by:
  1. Joseph E. Aldy, 2007. "Energy and Carbon Dynamics at Advanced Stages of Development: An Analysis of the U.S. States, 1960-1999," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 91-112.
  2. R. Inglesi-Lotz & J. Blignaut, 2011. "Electricity Intensities of the OECD and South Africa: A Comparison," Working Papers 204, Economic Research Southern Africa.
  3. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.
  4. Valeria Costantini & Chiara Martini, 2009. "The causality between energy consumption and economic growth: A multi-sectoral analysis using non-stationary cointegrated panel data," Departmental Working Papers of Economics - University 'Roma Tre' 0102, Department of Economics - University Roma Tre.
  5. Burke, Paul J., 2013. "The national-level energy ladder and its carbon implications," Environment and Development Economics, Cambridge University Press, vol. 18(04), pages 484-503, August.
  6. Adeyemi, Olutomi I. & Hunt, Lester C., 2007. "Modelling OECD industrial energy demand: Asymmetric price responses and energy-saving technical change," Energy Economics, Elsevier, vol. 29(4), pages 693-709, July.
  7. Holtedahl, Pernille & Joutz, Frederick L., 2004. "Residential electricity demand in Taiwan," Energy Economics, Elsevier, vol. 26(2), pages 201-224, March.
  8. Yoosoon Chang & Yongok Choi & Chang Sik Kim & Joon Y. Park & J. Isaac Miller, 2013. "Disentangling Temporal Patterns in Elasticities: A Functional Coefficient Panel Analysis of Electricity Demand," Working Papers 1320, Department of Economics, University of Missouri.
  9. Raymond Li & Guy C.K. Leung, 2012. "Gasoline consumption in China: a dynamic panel data analysis," Economics Bulletin, AccessEcon, vol. 32(3), pages 2375-2382.
  10. Wagner, Gernot, 2010. "Energy content of world trade," Energy Policy, Elsevier, vol. 38(12), pages 7710-7721, December.
  11. Verbruggen, Aviel, 2006. "Electricity intensity backstop level to meet sustainable backstop supply technologies," Energy Policy, Elsevier, vol. 34(11), pages 1310-1317, July.
  12. Liddle, Brantley, 2012. "Breaks and trends in OECD countries' energy–GDP ratios," Energy Policy, Elsevier, vol. 45(C), pages 502-509.
  13. Zhao, Xiaoli & Yin, Haitao, 2011. "Industrial relocation and energy consumption: Evidence from China," Energy Policy, Elsevier, vol. 39(5), pages 2944-2956, May.
  14. Verbruggen, Aviel, 2008. "Renewable and nuclear power: A common future?," Energy Policy, Elsevier, vol. 36(11), pages 4036-4047, November.
  15. Costantini, Valeria & Mazzanti, Massimiliano & Montini, Anna, 2013. "Environmental performance, innovation and spillovers. Evidence from a regional NAMEA," Ecological Economics, Elsevier, vol. 89(C), pages 101-114.
  16. Roger Fouquet, 2013. "Long Run Demand for Energy Services: the Role of Economic and Technological Development," Working Papers 2013-03, BC3.
  17. Liddle, Brantley, 2009. "Electricity intensity convergence in IEA/OECD countries: Aggregate and sectoral analysis," Energy Policy, Elsevier, vol. 37(4), pages 1470-1478, April.

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