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On the non-convergence of energy intensities: evidence from a pair-wise econometric approach

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  • Yannick LE PEN
  • Benoît SEVI

Abstract

This paper evaluates convergence of energy intensities for a group of 97 countries in the period 1971-2003. Convergence is tested using a recent method proposed by Pesaran (2007) [M.H. Pesaran. A pair- wise approach to testing for output and growth convergence. Journal of Econometrics 138, 312-355.] based on the stochastic convergence criterion. Main advantages of this method are that results do not depend on a benchmark against which convergence is assessed, and that it is more robust. Applications of several unit-root tests as well as a stationarity test uniformly reject the global convergence hypothesis. Locally, for Middle-East, OECD and Europe sub-groups, non-convergence is less strongly rejected. The introduction of possible structural breaks in the analysis only marginally provides more support to the convergence hypothesis.

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Paper provided by CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1 in its series Cahiers du CREDEN (CREDEN Working Papers) with number 08.12.79.

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Length: 26 pages
Date of creation: 2008
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Handle: RePEc:mop:credwp:08.12.79

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Keywords: Energy intensity; pair-wise test; unit-root test; stationarity test; structural break; convergence;

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Citations

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Cited by:
  1. Mohammadi, Hassan & Ram, Rati, 2012. "Cross-country convergence in energy and electricity consumption, 1971–2007," Energy Economics, Elsevier, vol. 34(6), pages 1882-1887.
  2. Tolón-Becerra, A. & Lastra-Bravo, X. & Botta, G.F., 2010. "Methodological proposal for territorial distribution of the percentage reduction in gross inland energy consumption according to the EU energy policy strategic goal," Energy Policy, Elsevier, vol. 38(11), pages 7093-7105, November.
  3. Wang, Chunhua, 2013. "Changing energy intensity of economies in the world and its decomposition," Energy Economics, Elsevier, vol. 40(C), pages 637-644.
  4. Honma, Satoshi & Hu, Jin-Li, 2014. "Industry-level total-factor energy efficiency in developed countries: A Japan-centered analysis," Applied Energy, Elsevier, vol. 119(C), pages 67-78.
  5. Liddle, Brantley, 2012. "Breaks and trends in OECD countries' energy–GDP ratios," Energy Policy, Elsevier, vol. 45(C), pages 502-509.
  6. David I. Stern, 2010. "The Role of Energy in Economic Growth," CCEP Working Papers 0310, Centre for Climate Economics & Policy, Crawford School of Public Policy, The Australian National University.
  7. Satoshi Honma & Jin-Li Hu, 2011. "Industry-level Total-factor Energy Efficiency in Developed Countries," Discussion Papers 51, Kyushu Sangyo University, Faculty of Economics.
  8. Xia, X.H. & Huang, G.T. & Chen, G.Q. & Zhang, Bo & Chen, Z.M. & Yang, Q., 2011. "Energy security, efficiency and carbon emission of Chinese industry," Energy Policy, Elsevier, vol. 39(6), pages 3520-3528, June.
  9. Stern, David I., 2012. "Modeling international trends in energy efficiency," Energy Economics, Elsevier, vol. 34(6), pages 2200-2208.
  10. Honma, Satoshi & Hu, Jin-Li, 2014. "Panel Data Parametric Frontier Technique for Measuring Total-factor Energy Efficiency: Application to Japanese Regions," MPRA Paper 54304, University Library of Munich, Germany.
  11. Liddle, Brantley, 2012. "OECD Energy Intensity: Measures, Trends, and Convergence," MPRA Paper 52085, University Library of Munich, Germany.

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