IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i1d10.1007_s13132-024-02057-x.html
   My bibliography  Save this article

The Effects of Schooling Rates and Income Levels on Energy Consumption in Households: A Panel Data Analysis on OECD Countries

Author

Listed:
  • Kezban Ayran Cihan

    (Recep Tayyip Erdogan University)

  • Nurdan Değirmenci

    (Recep Tayyip Erdogan University)

Abstract

While energy consumption affects many different areas, it is also affected by many different factors. Therefore, policies aiming to reduce energy consumption gain a multidimensional feature. Income level and education play an important role in the success of these policies. Because as the income and education levels of individuals increase, the success rate of policies aiming to reduce energy consumption is higher. In this way, while energy consumption is reduced or used more efficiently, environmental problems are prevented. In this study, the effects of average schooling rate and income level on energy consumption in residences were investigated. For this purpose, the panel data analysis was used within the scope of the annual data of 19 OECD member countries for the 1990–2019 period. As a result of the analysis, a cointegration relationship was detected between the variables and long-term coefficients and error correction coefficient and short-term coefficients were obtained with the Augmented Mean Group (AMG) estimator. The findings show that the long-term average schooling rate has a negative effect on energy consumption in households, but income level has a positive effect on a panel basis. On the other hand, it was also found that the error correction mechanism works and that the income level has a positive effect on the energy consumption in the households in the short term, but the average schooling rate does not have a significant effect on the energy consumption in the households in the short term.

Suggested Citation

  • Kezban Ayran Cihan & Nurdan Değirmenci, 2025. "The Effects of Schooling Rates and Income Levels on Energy Consumption in Households: A Panel Data Analysis on OECD Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 5271-5294, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02057-x
    DOI: 10.1007/s13132-024-02057-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-02057-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-02057-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2019. "Human capital and energy consumption: Evidence from OECD countries," Energy Economics, Elsevier, vol. 84(C).
    2. Dong, Xiao-Ying & Hao, Yu, 2018. "Would income inequality affect electricity consumption? Evidence from China," Energy, Elsevier, vol. 142(C), pages 215-227.
    3. Simon Reese & Joakim Westerlund, 2016. "Panicca: Panic on Cross‐Section Averages," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 31(6), pages 961-981, September.
    4. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    5. Fang, Zheng & Chang, Youngho, 2016. "Energy, human capital and economic growth in Asia Pacific countries — Evidence from a panel cointegration and causality analysis," Energy Economics, Elsevier, vol. 56(C), pages 177-184.
    6. Kehinde Damilola Ilesanmi & Devi Datt Tewari, 2017. "Energy consumption, human capital investment and economic growth in South Africa: a vector error correction model analysis," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 41(1), pages 55-70, March.
    7. Youngho Chang & Zheng Fang & Shigeyuki Hamori, 2017. "Volatility and Causality in Strategic Commodities: Characteristics, Myth and Evidence," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(8), pages 162-178, August.
    8. Chang, Yoosoon, 2004. "Bootstrap unit root tests in panels with cross-sectional dependency," Journal of Econometrics, Elsevier, vol. 120(2), pages 263-293, June.
    9. Guo, Ji & Xu, Yuanjing & Qu, Yao & Wang, Yiting & Wu, Xianhua, 2023. "Exploring factors affecting household energy consumption in the internet era: Empirical evidence from Chinese households," Energy Policy, Elsevier, vol. 183(C).
    10. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    11. Abdul Bashir & K. M. Husni Thamrin & Muhammad Farhan & Mukhlis Mukhlis & Dirta Pratama Atiyatna, 2019. "The Causality between Human Capital, Energy Consumption, CO2 Emissions, and Economic Growth: Empirical Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 98-104.
    12. Menyah, Kojo & Nazlioglu, Saban & Wolde-Rufael, Yemane, 2014. "Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach," Economic Modelling, Elsevier, vol. 37(C), pages 386-394.
    13. Nidhi Tewathia, 2014. "Determinants of the Household Electricity Consumption: A Case Study of Delhi," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 337-348.
    14. Huebner, Gesche & Shipworth, David & Hamilton, Ian & Chalabi, Zaid & Oreszczyn, Tadj, 2016. "Understanding electricity consumption: A comparative contribution of building factors, socio-demographics, appliances, behaviours and attitudes," Applied Energy, Elsevier, vol. 177(C), pages 692-702.
    15. Chen, Yang & Fang, Zheng, 2018. "Industrial electricity consumption, human capital investment and economic growth in Chinese cities," Economic Modelling, Elsevier, vol. 69(C), pages 205-219.
    16. Jakučionytė-Skodienė, Miglė & Liobikienė, Genovaitė, 2023. "Changes in energy consumption and CO2 emissions in the Lithuanian household sector caused by environmental awareness and climate change policy," Energy Policy, Elsevier, vol. 180(C).
    17. Markus Eberhardt, 2012. "Estimating panel time-series models with heterogeneous slopes," Stata Journal, StataCorp LLC, vol. 12(1), pages 61-71, March.
    18. Rahman, Mohammad Mafizur & Velayutham, Eswaran, 2020. "Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia," Renewable Energy, Elsevier, vol. 147(P1), pages 399-408.
    19. Oluwatoyin A. Matthew & Christian U. Ede & Romanus Osabohien & Jeremiah Ejemeyovwi & Fagbeminiyi F. Fasina & Doris Akinpelumi, 2018. "Electricity Consumption and Human Capital Development in Nigeria: Exploring the Implications for Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 8-15.
    20. Cayla, Jean-Michel & Maizi, Nadia & Marchand, Christophe, 2011. "The role of income in energy consumption behaviour: Evidence from French households data," Energy Policy, Elsevier, vol. 39(12), pages 7874-7883.
    21. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2023. "Human capital and energy consumption: Six centuries of evidence from the United Kingdom," Energy Economics, Elsevier, vol. 117(C).
    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. Jian Xue & Zeeshan Rasool & Raima Nazar & Ahmad Imran Khan & Shaukat Hussain Bhatti & Sajid Ali, 2021. "Revisiting Natural Resources—Globalization-Environmental Quality Nexus: Fresh Insights from South Asian Countries," Sustainability, MDPI, vol. 13(8), pages 1-19, April.
    2. Mohammed Hadi & George Campbell, 2020. "Relationship among Energy Consumption, Inflation, Human Capital and Economic Growth: Evidence from Indonesia," International Journal of Applied Economics, Finance and Accounting, Online Academic Press, vol. 6(2), pages 85-92.
    3. Khan, Zeeshan & Malik, Muhammad Yousaf & Latif, Kashmala & Jiao, Zhilun, 2020. "Heterogeneous effect of eco-innovation and human capital on renewable & non-renewable energy consumption: Disaggregate analysis for G-7 countries," Energy, Elsevier, vol. 209(C).
    4. Cheng, Yuk-Shing & Li, Raymond & Woo, Chi-Keung, 2021. "Regional energy-growth nexus and energy conservation policy in China," Energy, Elsevier, vol. 217(C).
    5. Le, Thai-Ha & Nguyen, Canh Phuc, 2019. "Is energy security a driver for economic growth? Evidence from a global sample," Energy Policy, Elsevier, vol. 129(C), pages 436-451.
    6. Pablo-Romero, María P. & Pozo-Barajas, Rafael & Washburn, Christian, 2024. "Productive electricity and non-electricity consumption effects on economic growth: A Latin America analysis," Energy, Elsevier, vol. 305(C).
    7. Zheng Fang & Bihong Huang & Zhuoxiang Yang, 2020. "Trade openness and the environmental Kuznets curve: Evidence from Chinese cities," The World Economy, Wiley Blackwell, vol. 43(10), pages 2622-2649, October.
    8. Anh Hoang To & Duc Hong Vo, 2020. "The Balanced Energy Mix for Achieving Environmental and Economic Goals in the Long Run," Energies, MDPI, vol. 13(15), pages 1-21, July.
    9. Yao, Yao & Ivanovski, Kris & Inekwe, John & Smyth, Russell, 2019. "Human capital and energy consumption: Evidence from OECD countries," Energy Economics, Elsevier, vol. 84(C).
    10. Carvelli, Gianni, 2024. "The dynamic effects of public investments on private capital formation: Modelling a heterogeneous asymmetric cointegration with unobserved global factors," International Economics, Elsevier, vol. 177(C).
    11. Alvarado, Rafael & Deng, Qiushi & Tillaguango, Brayan & Méndez, Priscila & Bravo, Diana & Chamba, José & Alvarado-Lopez, María & Ahmad, Munir, 2021. "Do economic development and human capital decrease non-renewable energy consumption? Evidence for OECD countries," Energy, Elsevier, vol. 215(PB).
    12. Zheng Fang & Jiang Yu, 2020. "The role of human capital in energy-growth nexus: an international evidence," Empirical Economics, Springer, vol. 58(3), pages 1225-1247, March.
    13. Osarumwense Osabuohien-Irabor & Igor Mikhailovich Drapkin, 2022. "The Impact of Technological Innovation on Energy Consumption in OECD Economies: the role of Outward Foreign Direct Investment and International Trade Openness," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 317-333, July.
    14. Saqib, Najia & Ozturk, Ilhan & Sharif, Arshian & Cichoń, Dariusz, 2024. "Enhancing sustainable energy: Mineral exports, financial development, and foreign investment can build a greener future?," Resources Policy, Elsevier, vol. 97(C).
    15. Olivier Damette & Mathilde Maurel & Michael A. Stemmer, 2016. "What does it take to grow out of recession? An error-correction approach towards growth convergence of European and transition countries," Post-Print halshs-01318131, HAL.
    16. Ullah, Sana & Gozgor, Giray & Lu, Zhou, 2024. "How do conflicts affect energy security risk? Evidence from major energy-consuming economies," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 175-187.
    17. Guo, Xiuping & Meng, Xianglei & Luan, Qingfeng & Wang, Yanhua, 2023. "Trade openness, globalization, and natural resources management: The moderating role of economic complexity in newly industrialized countries," Resources Policy, Elsevier, vol. 85(PA).
    18. Li, Xuelin & Yang, Lin, 2023. "Natural resources, remittances and carbon emissions: A Dutch Disease perspective with remittances for South Asia," Resources Policy, Elsevier, vol. 85(PB).
    19. Usman, Muhammad & Khalid, Khaizran & Mehdi, Muhammad Abuzar, 2021. "What determines environmental deficit in Asia? Embossing the role of renewable and non-renewable energy utilization," Renewable Energy, Elsevier, vol. 168(C), pages 1165-1176.
    20. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02057-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.