IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/103456.html
   My bibliography  Save this paper

Dynamics and Determinants of Energy Intensity: Evidence from Pakistan

Author

Listed:
  • Malik, Afia

Abstract

The study has identified poor institutional quality and industrialization behind high energy intensity in Pakistan while income per capita and associated urbanization playing a significant role in reducing energy intensity. For Pakistan being a country in transition, industrialization is expected to rise in future along with its adverse impact on energy intensity. However, economic policies that boost income would help in reducing energy intensity; provided income effect is large enough and sustainable to offset the negative impact of industrialization. Similarly, good governance practices and better quality of institutions can play an effective role in increasing the efficiency in the use of energy thus reducing overall energy intensity

Suggested Citation

  • Malik, Afia, 2019. "Dynamics and Determinants of Energy Intensity: Evidence from Pakistan," MPRA Paper 103456, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:103456
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/103456/1/MPRA_paper_103456.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Khan, Muhammad Arshad, 2015. "Modelling and forecasting the demand for natural gas in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1145-1159.
    2. Jamil, Faisal & Ahmad, Eatzaz, 2010. "The relationship between electricity consumption, electricity prices and GDP in Pakistan," Energy Policy, Elsevier, vol. 38(10), pages 6016-6025, October.
    3. O'Neill, Brian C. & Ren, Xiaolin & Jiang, Leiwen & Dalton, Michael, 2012. "The effect of urbanization on energy use in India and China in the iPETS model," Energy Economics, Elsevier, vol. 34(S3), pages 339-345.
    4. Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
    5. Donald W. Jones, 1989. "Urbanization and Energy Use In Economic Development," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 29-44.
    6. Stern, David I., 2010. "Modeling International Trends in Energy Efficiency and Carbon Emissions," Research Reports 94950, Australian National University, Environmental Economics Research Hub.
    7. Wu, Yanrui, 2012. "Energy intensity and its determinants in China's regional economies," Energy Policy, Elsevier, vol. 41(C), pages 703-711.
    8. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    9. Robert J R Elliott & Puyang Sun & Tong Zhu, 2014. "Urbanization and Energy Intensity: A Province-level Study for China," Discussion Papers 14-05, Department of Economics, University of Birmingham.
    10. repec:pid:wpaper:2012:4 is not listed on IDEAS
    11. Yabo Zhao & Shaojian Wang, 2015. "The Relationship between Urbanization, Economic Growth and Energy Consumption in China: An Econometric Perspective Analysis," Sustainability, MDPI, vol. 7(5), pages 1-19, May.
    12. Rafat Mahmood & Sundus Saleemi & Sajid Amin, 2016. "Impact of Climate Change on Electricity Demand: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(1), pages 29-47.
    13. Afia Malik, 2012. "Power Crisis in Pakistan: A Crisis in Governance?," PIDE Monograph Series 2012:1, Pakistan Institute of Development Economics.
    14. Shaista Alam & Mohammad Sabihuddin Butt, 2001. "Assessing Energy Consumption and Energy Intensity Changes in Pakistan: An Application of Complete Decomposition Model," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 40(2), pages 135-147.
    15. Rehana Siddiqui, 1999. "Demand for Energy and the Revenue Impact of Changes in Energy Prices," PIDE-Working Papers 1999:174, Pakistan Institute of Development Economics.
    16. Khan, Muhammad Arshad & Abbas, Faisal, 2016. "The dynamics of electricity demand in Pakistan: A panel cointegration analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1159-1178.
    17. Javid, Muhammad & Qayyum, Abdul, 2014. "Electricity consumption-GDP nexus in Pakistan: A structural time series analysis," Energy, Elsevier, vol. 64(C), pages 811-817.
    18. Ghosh, Sajal & Kanjilal, Kakali, 2014. "Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India," Energy, Elsevier, vol. 66(C), pages 324-331.
    19. Rühl, Christof & Appleby, Paul & Fennema, Julian & Naumov, Alexander & Schaffer, Mark, 2012. "Economic development and the demand for energy: A historical perspective on the next 20 years," Energy Policy, Elsevier, vol. 50(C), pages 109-116.
    20. Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
    21. Sadorsky, Perry, 2013. "Do urbanization and industrialization affect energy intensity in developing countries?," Energy Economics, Elsevier, vol. 37(C), pages 52-59.
    22. Nawaz, Saima & Iqbal, Nasir & Anwar, Saba, 2014. "Modelling electricity demand using the STAR (Smooth Transition Auto-Regressive) model in Pakistan," Energy, Elsevier, vol. 78(C), pages 535-542.
    23. Li, Baizhan & Yao, Runming, 2009. "Urbanisation and its impact on building energy consumption and efficiency in China," Renewable Energy, Elsevier, vol. 34(9), pages 1994-1998.
    24. Muhammad Arshad Khan & Abdul Qayyum, 2009. "The demand for electricity in Pakistan," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 33(1), pages 70-96, March.
    25. Odile Blanchard, 1992. "Energy consumption and modes of industrialization ; four developing countries," Post-Print halshs-00196341, HAL.
    26. Fredriksson, Per G. & Vollebergh, Herman R. J. & Dijkgraaf, Elbert, 2004. "Corruption and energy efficiency in OECD countries: theory and evidence," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 207-231, March.
    27. Rossana Galli, 1998. "The Relationship Between Energy Intensity and Income Levels: Forecasting Long Term Energy Demand in Asian Emerging Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 85-105.
    28. Ernesto Sanchez-Triana & Dan Biller & Ijaz Nabi & Leonard Ortolano & Ghazal Dezfuli & Javaid Afzal & Santiago Enriquez, 2014. "Revitalizing Industrial Growth in Pakistan : Trade, Infrastructure, and Environmental Performance," World Bank Publications - Books, The World Bank Group, number 19022, December.
    29. Blanchard, Odile, 1992. "Energy consumption and modes of industrialization : Four developing countries," Energy Policy, Elsevier, vol. 20(12), pages 1174-1185, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Ke & Lin, Boqiang, 2015. "Impacts of urbanization and industrialization on energy consumption/CO2 emissions: Does the level of development matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1107-1122.
    2. Zhang, Dayong & Cao, Hong & Wei, Yi-Ming, 2016. "Identifying the determinants of energy intensity in China: A Bayesian averaging approach," Applied Energy, Elsevier, vol. 168(C), pages 672-682.
    3. Bakirtas, Tahsin & Akpolat, Ahmet Gokce, 2018. "The relationship between energy consumption, urbanization, and economic growth in new emerging-market countries," Energy, Elsevier, vol. 147(C), pages 110-121.
    4. Sadorsky, Perry, 2013. "Do urbanization and industrialization affect energy intensity in developing countries?," Energy Economics, Elsevier, vol. 37(C), pages 52-59.
    5. Mounir Belloumi & Atef Saad Alshehry, 2016. "The Impact of Urbanization on Energy Intensity in Saudi Arabia," Sustainability, MDPI, vol. 8(4), pages 1-17, April.
    6. Ma, Ben, 2015. "Does urbanization affect energy intensities across provinces in China?Long-run elasticities estimation using dynamic panels with heterogeneous slopes," Energy Economics, Elsevier, vol. 49(C), pages 390-401.
    7. Robert J R Elliott & Puyang Sun & Tong Zhu, 2014. "Urbanization and Energy Intensity: A Province-level Study for China," Discussion Papers 14-05, Department of Economics, University of Birmingham.
    8. Nguyen Quan & Makoto Kakinaka & Koji Kotani, 2017. "How does urbanization affect energy and CO2 emission intensities in Vietnam? Evidence from province-level data," Working Papers SDES-2017-8, Kochi University of Technology, School of Economics and Management, revised Jun 2017.
    9. Khan, Muhammad Arshad & Abbas, Faisal, 2016. "The dynamics of electricity demand in Pakistan: A panel cointegration analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1159-1178.
    10. Perry Sadorsky, 2014. "The Effect of Urbanization and Industrialization on Energy Use in Emerging Economies: Implications for Sustainable Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(2), pages 392-409, April.
    11. Elliott, Robert J.R. & Sun, Puyang & Zhu, Tong, 2017. "The direct and indirect effect of urbanization on energy intensity: A province-level study for China," Energy, Elsevier, vol. 123(C), pages 677-692.
    12. Shemelis Kebede Hundie & Megersa Debela Daksa, 2019. "Does energy-environmental Kuznets curve hold for Ethiopia? The relationship between energy intensity and economic growth," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-21, December.
    13. Franco, Sainu & Mandla, Venkata Ravibabu & Ram Mohan Rao, K., 2017. "Urbanization, energy consumption and emissions in the Indian context A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 898-907.
    14. Adom, Philip Kofi, 2015. "Business cycle and economic-wide energy intensity: The implications for energy conservation policy in Algeria," Energy, Elsevier, vol. 88(C), pages 334-350.
    15. Rath, Badri Narayan & Akram, Vaseem & Bal, Debi Prasad & Mahalik, Mantu Kumar, 2019. "Do fossil fuel and renewable energy consumption affect total factor productivity growth? Evidence from cross-country data with policy insights," Energy Policy, Elsevier, vol. 127(C), pages 186-199.
    16. Lin, Boqiang & Raza, Muhammad Yousaf, 2021. "Analysis of electricity consumption in Pakistan using index decomposition and decoupling approach," Energy, Elsevier, vol. 214(C).
    17. Nawaz, Saima & Iqbal, Nasir & Anwar, Saba, 2014. "Modelling electricity demand using the STAR (Smooth Transition Auto-Regressive) model in Pakistan," Energy, Elsevier, vol. 78(C), pages 535-542.
    18. Ghosh, Sajal & Kanjilal, Kakali, 2014. "Long-term equilibrium relationship between urbanization, energy consumption and economic activity: Empirical evidence from India," Energy, Elsevier, vol. 66(C), pages 324-331.
    19. Mohammed Musah & Yusheng Kong & Isaac Adjei Mensah & Stephen Kwadwo Antwi & Mary Donkor, 2021. "The connection between urbanization and carbon emissions: a panel evidence from West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11525-11552, August.
    20. Wang, Qiang & Wu, Shi-dai & Zeng, Yue-e & Wu, Bo-wei, 2016. "Exploring the relationship between urbanization, energy consumption, and CO2 emissions in different provinces of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1563-1579.

    More about this item

    Keywords

    Energy Intensity; Income per capita; Industry; Urbanization; Institutional Quality;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:103456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.