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The Dynamics of Energy Intensity Convergence in the EU-28 Countries

Author

Listed:
  • Mehmet Balcilar

    (Department of Economics, Eastern Mediterranean University)

  • Firat Emir

    (Department of Economics, Bahcesehir Cyprus University)

Abstract

This paper examines the dynamics of the energy intensity convergence in the EU-28 countries using panel data for the period from 1990 to 2016. We use Phillips and Sul’s (PS) (2007) approach to test for the energy intensity convergence and identify convergence clusters. In addition to the EU-28 members, EU-15 and the new EU members joined after 2004 are analysed as distinct groups for the periods 1990–2016, 1990–2004 and 2005–2016. Our results show convergence amongst the EU countries during the full and two subsample periods considered. However, the convergence takes place within clusters and there is no evidence of all members converging to a single club. Indeed, after the expansion of the EU, and depending on the decoupling of energy intensity levels amongst EU countries, convergence became more common and diverse. The study also makes policy recommendations based on the empirical findings.

Suggested Citation

  • Mehmet Balcilar & Firat Emir, 2018. "The Dynamics of Energy Intensity Convergence in the EU-28 Countries," Working Papers 15-37, Eastern Mediterranean University, Department of Economics.
    • Handle: RePEc:emu:wpaper:15-37.pdf
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    File URL: http://repec.economics.emu.edu.tr/RePEc/emu/wpaper/15-37.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy Intensity; Club Convergence; Convergence Test; European Union;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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