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Spillovers impact of institutional and economic factors in energy intensity

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  • Rafael Alvarado
  • Cristian Ortiz
  • Lizeth Cuesta
  • Brayan Tillaguango

Abstract

Previous literature does not incorporate the spillover effects of institutional factors in the analysis of the determinants of energy intensity. This research aims to empirically examine the impact of institutional and economic factors on energy intensity using spatial panel data models. Specifically, the institutional factors included are civil liberties, political corruption, and women's political empowerment. We find robust evidence that there are spillover effects from regressors on the energy intensity of countries. We find that the index of civil liberties, political corruption, and women's political empowerment reduce energy intensity. In addition, we find robust evidence that real output per capita and oil price reduce energy intensity, while manufacturing industry increase it. Our results indicate that manufacturing activity requires greater attention from policymakers and academics to mitigate the harmful aspects of energy intensity. Likewise, our results constitute a new look at the approach to mechanisms to reduce energy intensity to achieve sustainable economic development consistent with Sustainable Development Goals 7 and 12.

Suggested Citation

  • Rafael Alvarado & Cristian Ortiz & Lizeth Cuesta & Brayan Tillaguango, 2023. "Spillovers impact of institutional and economic factors in energy intensity," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1805-1823, June.
    • Handle: RePEc:wly:sustdv:v:31:y:2023:i:3:p:1805-1823
    DOI: 10.1002/sd.2485
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