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Economic Development and the Structure of the Demand for Commercial Energy

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  • Ruth A. Judson
  • Richard Schmalensee
  • Thomas M. Stoker

Abstract

To deepen understanding of the relation between economic development and energy demand, this study estimates the relations between per-capita GDP5 and per-capita energy consumption in major economic sectors. Panel data covering up to 123 nations are employed, and measurement problems are treated both in dataset construction and in estimation. Time and country fixed effects are assumed, and flexible forms for income effects are employed. There are substantial differences among sectors in the structure of country, time, and income effects. In particular, the household sector's share of aggregate energy consumption tends to fall with income, the share of transportation tends to rise, and the share of industry follows an inverse-U pattern.

Suggested Citation

  • Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, , vol. 20(2), pages 29-57, April.
    • Handle: RePEc:sae:enejou:v:20:y:1999:i:2:p:29-57
    DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No2-2
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    References listed on IDEAS

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    1. Robert S. Pindyck, 1979. "The Structure of World Energy Demand," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661772, December.
    2. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
    3. repec:aen:journl:1993v14-02-a02 is not listed on IDEAS
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    Cited by:

    1. Le, Ha Chi & Bhattacharya, Mita & Smyth, Russell & Zhang, Xibin, 2024. "Does economic growth cause energy intensity of well-being in the very long run? Semi-parametric evidence for selected OECD countries," Energy Economics, Elsevier, vol. 139(C).
    2. Cruz, Sérgio, 2025. "Income elasticity of electricity demand in the context of Portugal’s energy transition," Utilities Policy, Elsevier, vol. 97(C).

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