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Reducing Energy Intensity and Institutional Environment: A Cross Country Analysis

Author

Listed:
  • Nikita Suslov

    (Institute of Economics and Industrial Engineering SB RAS, Novosibirsk, Russia,)

  • Meltenisova Ekaterina

    (Institute of Economics and Industrial Engineering SB RAS, Novosibirsk, Russia,)

Abstract

The article analyses the way the quality of institutions affects the performance of energy saving policies. Based on the analysis of dynamic panel data for 69 countries over the period from 2002 to 2012, using Arellano-Bond approach, we have shown that the elasticity of energy consumption by price of energy depends on institutional factors. We also demonstrated that absolute values of the said indicators are higher in OECD than CIS countries over the whole data sample, which is explained by a higher quality of institutions. Similar valuations and calculations have been produced for the industrial sector as well as the production sphere. The energy consumption in the industrial sector has proved to be more sensitive to the quality of institutions than in production sphere as a whole. We have also performed a general analysis of trends of GDP energy consumption for a number of countries pointing out that a growth of energy prices enhances energy saving processes.

Suggested Citation

  • Nikita Suslov & Meltenisova Ekaterina, 2019. "Reducing Energy Intensity and Institutional Environment: A Cross Country Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 283-295.
    • Handle: RePEc:eco:journ2:2019-06-33
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    References listed on IDEAS

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    Cited by:

    1. Haider Mahmood & Awad Ali Alanzi, 2020. "Rule of Law and Environment Nexus in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 7-12.

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    More about this item

    Keywords

    energy intensity; cross-country analysis; Arellano-Bond approach.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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