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On the non-convergence of energy intensities: Evidence from a pair-wise econometric approach

  • Le Pen, Yannick
  • Sévi, Benoît

This paper evaluates the convergence of energy intensities for a group of 97 countries in the period 1971–2003. Convergence is tested using a recent method proposed by Pesaran (2007) [Pesaran, M.H., 2007. A pair-wise approach to testing for output and growth convergence. Journal of Econometrics 138, 312–355] based on the stochastic convergence criterion. An advantage of this method is that results do not depend on a benchmark against which convergence is assessed. It gives more robust results. Applications of several unit-root tests as well as a stationarity test uniformly reject the global convergence hypothesis. Locally, for Middle East, OECD and Europe sub-groups, non-convergence is less strongly rejected. The introduction of possible structural breaks in the analysis only marginally provides more support to the convergence hypothesis.

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Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/6801.

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Date of creation: 2010
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Publication status: Published in Ecological Economics, 2010, Vol. 69, no. 3. pp. 641-650.Length: 9 pages
Handle: RePEc:dau:papers:123456789/6801
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