IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i8p2625-d160082.html
   My bibliography  Save this article

Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results

Author

Listed:
  • Tiago Sequeira

    () (Universidade da Beira Interior and CEFAGE-UBI, Avenida Marques d’Avila e Bolama, 6201-001 Covilhã, Portugal)

  • Marcelo Santos

    () (Universidade da Beira Interior and CEFAGE-UBI, Avenida Marques d’Avila e Bolama, 6201-001 Covilhã, Portugal)

Abstract

The ratio of energy use to Gross Domestic Product (defined as energy intensity) is a major determinant of environmental hazard and an indicator of eco-efficiency. This paper explains why education can have an effect in reducing the energy intensity thus affecting eco-efficiency. We devise a stylized economic model with simple and widely accepted assumptions that highlights the role of education in decreasing energy intensity worldwide. In an empirical application that is robust to the features of the data, we show that primary schooling contributes to a decrease in energy intensity which has a very significant effect, even accounting for the other well-known determinants of energy intensity. Additionally, when schooling is taken into account, income is no longer a negative determinant of energy intensity.

Suggested Citation

  • Tiago Sequeira & Marcelo Santos, 2018. "Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results," Sustainability, MDPI, Open Access Journal, vol. 10(8), pages 1-17, July.
  • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2625-:d:160082
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/8/2625/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/10/8/2625/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Eberhardt, Markus & Presbitero, Andrea F., 2015. "Public debt and growth: Heterogeneity and non-linearity," Journal of International Economics, Elsevier, vol. 97(1), pages 45-58.
    2. Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
    3. Pesaran, M.H., 2004. "‘General Diagnostic Tests for Cross Section Dependence in Panels’," Cambridge Working Papers in Economics 0435, Faculty of Economics, University of Cambridge.
    4. repec:gam:jsusta:v:10:y:2018:i:5:p:1663-:d:148203 is not listed on IDEAS
    5. Lazear, Edward P, 1977. "Education: Consumption or Production?," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 569-597, June.
    6. Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-374, June.
    7. Zsuzsanna Csereklyei, M. d. Mar Rubio-Varas, and David I. Stern, 2016. "Energy and Economic Growth: The Stylized Facts," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    8. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    9. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    10. Lee, Chien-Chiang & Chang, Chun-Ping, 2007. "The impact of energy consumption on economic growth: Evidence from linear and nonlinear models in Taiwan," Energy, Elsevier, vol. 32(12), pages 2282-2294.
    11. Arnold, Lutz G., 1998. "Growth, Welfare, and Trade in an Integrated Model of Human-Capital Accumulation and Research," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 81-105, January.
    12. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    13. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
    14. David E. Rapach, 2002. "Are Real GDP Levels Nonstationary? Evidence from Panel Data Tests," Southern Economic Journal, Southern Economic Association, vol. 68(3), pages 473-495, January.
    15. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    16. repec:gam:jsusta:v:10:y:2018:i:3:p:737-:d:135193 is not listed on IDEAS
    17. 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.
    18. M. Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117.
    19. Reis, Ana Balcao, 2001. "Endogenous Growth and the Possibility of Eliminating Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 360-373, November.
    20. repec:eee:energy:v:135:y:2017:i:c:p:237-248 is not listed on IDEAS
    21. Kris Van den Branden, 2015. "Sustainable Education: Exploiting Students’ Energy for Learning as a Renewable Resource," Sustainability, MDPI, Open Access Journal, vol. 7(5), pages 1-17, May.
    22. Chang, Shu-Chen, 2015. "Effects of financial developments and income on energy consumption," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 28-44.
    23. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    24. Shin-Cheng Yeh & Jing-Yuan Huang & Hui-Ching Yu, 2017. "Analysis of Energy Literacy and Misconceptions of Junior High Students in Taiwan," Sustainability, MDPI, Open Access Journal, vol. 9(3), pages 1-29, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    energy intensity; income; education; eco-efficiency; circular economy;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    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:gam:jsusta:v:10:y:2018:i:8:p:2625-:d:160082. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: https://www.mdpi.com/ .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.