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Cross-country convergence in energy and electricity consumption, 1971–2007

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  • Mohammadi, Hassan
  • Ram, Rati

Abstract

Patterns of convergence in per-capita consumption of energy and electricity are studied from a large cross-country data set covering the period 1971–2007. Along with unconditional β-convergence, we use σ-convergence criterion and a simple model of conditional β-convergence. The exploration is done for the entire period and several subperiods. In addition to OLS for the global sample, β-convergence is studied for top and bottom deciles through quantile regressions. Ten points are noted. First, global convergence in energy consumption is generally weak. Second, convergence in electricity usage is strong in most cases. Third, despite some variations, the patterns are fairly similar across the four periods. Fourth, energy convergence in both top and bottom deciles is generally weak, but there are some variations. Fifth, for electricity, convergence is noted in the top, but not in the bottom, decile. Sixth, unconditional β-convergence patterns are consistent with σ-convergence scenarios. Seventh, as is usually noted, convergence is more marked in conditional β-format than in the unconditional models. However, interpretation of conditional convergence in usage of energy or electricity is somewhat ambiguous. Eighth, weak convergence in energy usage might reflect a modestly larger increase in low-usage contexts relative to high-usage cases, and might not be of concern from the sustainability perspective. Ninth, strong convergence in electricity usage is associated with a much higher rate of global increase than the weakly-convergent energy usage. Last, the difference in convergence patterns for energy- and electricity-usage seems to merit further exploration.

Suggested Citation

  • Mohammadi, Hassan & Ram, Rati, 2012. "Cross-country convergence in energy and electricity consumption, 1971–2007," Energy Economics, Elsevier, vol. 34(6), pages 1882-1887.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1882-1887 DOI: 10.1016/j.eneco.2012.08.001
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    References listed on IDEAS

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    Cited by:

    1. Fallahi, Firouz & Voia, Marcel-Cristian, 2015. "Convergence and persistence in per capita energy use among OECD countries: Revisited using confidence intervals," Energy Economics, Elsevier, pages 246-253.
    2. Mishra, Vinod & Smyth, Russell, 2014. "Convergence in energy consumption per capita among ASEAN countries," Energy Policy, Elsevier, pages 180-185.
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    4. Mishra, Vinod & Smyth, Russell, 2017. "Conditional convergence in Australia's energy consumption at the sector level," Energy Economics, Elsevier, pages 396-403.
    5. Parker, Steven & Liddle, Brantley, 2017. "Economy-wide and manufacturing energy productivity transition paths and club convergence for OECD and non-OECD countries," Energy Economics, Elsevier, pages 338-346.
    6. Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Stochastic convergence in per capita fossil fuel consumption in U.S. states," Energy Economics, Elsevier, pages 382-395.
    7. Burnett, J. Wesley, 2016. "Club convergence and clustering of U.S. energy-related CO2 emissions," Resource and Energy Economics, Elsevier, vol. 46(C), pages 62-84.
    8. Mohammadi, Hassan & Ram, Rati, 2017. "Convergence in energy consumption per capita across the US states, 1970–2013: An exploration through selected parametric and non-parametric methods," Energy Economics, Elsevier, pages 404-410.
    9. Borozan, Djula, 2017. "Testing for convergence in electricity consumption across Croatian regions at the consumer's sectoral level," Energy Policy, Elsevier, vol. 102(C), pages 145-153.
    10. Kim, Young Se, 2015. "Electricity consumption and economic development: Are countries converging to a common trend?," Energy Economics, Elsevier, pages 192-202.
    11. Emmanuel Anoruo & William R. DiPietro, 2014. "Convergence in Per Capita Energy Consumption among African Countries: Evidence from Sequential Panel Selection Method," International Journal of Energy Economics and Policy, Econjournals, pages 568-577.
    12. Herrerias, M.J. & Aller, Carlos & Ordóñez, Javier, 2017. "Residential energy consumption: A convergence analysis across Chinese regions," Energy Economics, Elsevier, pages 371-381.
    13. Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Is there convergence in per capita renewable energy consumption across U.S. States? Evidence from LM and RALS-LM unit root tests with breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 715-728.
    14. Hurmekoski, Elias & Hetemäki, Lauri & Linden, Mika, 2015. "Factors affecting sawnwood consumption in Europe," Forest Policy and Economics, Elsevier, vol. 50(C), pages 236-248.
    15. Meng, Ming & Payne, James E. & Lee, Junsoo, 2013. "Convergence in per capita energy use among OECD countries," Energy Economics, Elsevier, pages 536-545.
    16. Zhou, D.Q. & Wang, Qunwei & Su, B. & Zhou, P. & Yao, L.X., 2016. "Industrial energy conservation and emission reduction performance in China: A city-level nonparametric analysis," Applied Energy, Elsevier, pages 201-209.
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    18. repec:eee:eneeco:v:67:y:2017:i:c:p:91-97 is not listed on IDEAS
    19. Zhao Liu & Ling Li & Yue-Jun Zhang, 2015. "Investigating the CO 2 emission differences among China’s transport sectors and their influencing factors," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, pages 1323-1343.
    20. repec:eee:enepol:v:109:y:2017:i:c:p:499-509 is not listed on IDEAS
    21. Mishra, Vinod & Smyth, Russell, 2017. "Conditional convergence in Australia's energy consumption at the sector level," Energy Economics, Elsevier, pages 396-403.
    22. Sebestyénné Szép, Tekla, 2016. "Energetikai konvergencia az Energia 2020 stratégia tükrében. A konvergenciaszámítások alkalmazásának egy alternatív lehetősége
      [Energy convergence in the light of the Energy 2020 strategy. An alter
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 564-587.

    More about this item

    Keywords

    Cross-country convergence; Energy consumption; Electricity consumption; Quantiles;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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