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Intangible capital and sectoral energy intensity: Evidence from 40 economies

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  • Shenglang Yang

Abstract

Intangible capital has been found to be an increasingly important source of productivity and economic growth. However, its effects on energy intensity have received little attention. Given the importance of reducing energy intensity, this study tests the relationship between sectoral intangible capital and sectoral energy intensity in 40 economies from 1995 to 2007 using data from World Input Output Database (WIOD). It is found that the increase in sectoral intangible capital is associated with the decline in sectoral energy intensity. The results remain robust given various forms of econometric specification (OLS, random effects, fixed effects and system GMM). Compared with previous literature, this study proposes a simple theoretical linkage between sectoral intangible capital and sectoral energy intensity, and for the first time confirms this relationship worldwide. This study also provides policies implications in promoting intangible investment and the knowledge economy.

Suggested Citation

  • Shenglang Yang, 2016. "Intangible capital and sectoral energy intensity: Evidence from 40 economies," ANU Working Papers in Economics and Econometrics 2016-646, Australian National University, College of Business and Economics, School of Economics.
    • Handle: RePEc:acb:cbeeco:2016-646
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    File URL: https://www.cbe.anu.edu.au/researchpapers/econ/wp646.pdf
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    More about this item

    Keywords

    Intangible capital; Energy intensity; Sectoral level; World Input Output Database;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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