IDEAS home Printed from https://ideas.repec.org/p/emu/wpaper/15-37.pdf.html
   My bibliography  Save this paper

The Dynamics of Energy Intensity Convergence in the EU-28 Countries

Author

Listed:
  • Mehmet Balcilar

    () (Department of Economics, Eastern Mediterranean University)

  • Firat Emir

    (Department of Economics, Eastern Mediterranean University)

  • Muhammad Shahbaz

    (Montpelier Business School, Montpelier, France)

Abstract

This paper examines the dynamics of the energy intensity convergence in the EU-28 countries using panel data for the period from 1990 to 2016. We use Phillips and Sul’s (PS) (2007) approach to test for the energy intensity convergence and identify convergence clusters. In addition to the EU-28 members, EU-15 and the new EU members joined after 2004 are analysed as distinct groups for the periods 1990–2016, 1990–2004 and 2005–2016. Our results show convergence amongst the EU countries during the full and two subsample periods considered. However, the convergence takes place within clusters and there is no evidence of all members converging to a single club. Indeed, after the expansion of the EU, and depending on the decoupling of energy intensity levels amongst EU countries, convergence became more common and diverse. The study also makes policy recommendations based on the empirical findings.

Suggested Citation

  • Mehmet Balcilar & Firat Emir & Muhammad Shahbaz, 2018. "The Dynamics of Energy Intensity Convergence in the EU-28 Countries," Working Papers 15-37, Eastern Mediterranean University, Department of Economics.
  • Handle: RePEc:emu:wpaper:15-37.pdf
    as

    Download full text from publisher

    File URL: http://repec.economics.emu.edu.tr/RePEc/emu/wpaper/15-37.pdf
    File Function: First version, 2018
    Download Restriction: no

    References listed on IDEAS

    as
    1. Peter C. B. Phillips & Donggyu Sul, 2007. "Transition Modeling and Econometric Convergence Tests," Econometrica, Econometric Society, vol. 75(6), pages 1771-1855, November.
    2. Mohammadi, Hassan & Ram, Rati, 2017. "Convergence in energy consumption per capita across the US states, 1970–2013: An exploration through selected parametric and non-parametric methods," Energy Economics, Elsevier, vol. 62(C), pages 404-410.
    3. Chang, Ching-Chih, 2010. "A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China," Applied Energy, Elsevier, vol. 87(11), pages 3533-3537, November.
    4. repec:aen:journl:ej39-4-kempa is not listed on IDEAS
    5. repec:eee:eneeco:v:69:y:2018:i:c:p:111-127 is not listed on IDEAS
    6. Zhang, Xing-Ping & Cheng, Xiao-Mei, 2009. "Energy consumption, carbon emissions, and economic growth in China," Ecological Economics, Elsevier, vol. 68(10), pages 2706-2712, August.
    7. Liddle, Brantley, 2009. "Electricity intensity convergence in IEA/OECD countries: Aggregate and sectoral analysis," Energy Policy, Elsevier, vol. 37(4), pages 1470-1478, April.
    8. 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.
    9. repec:dau:papers:123456789/6801 is not listed on IDEAS
    10. Mishra, Vinod & Smyth, Russell, 2017. "Conditional convergence in Australia's energy consumption at the sector level," Energy Economics, Elsevier, vol. 62(C), pages 396-403.
    11. Herrerias, M.J. & Cuadros, A. & Orts, V., 2013. "Energy intensity and investment ownership across Chinese provinces," Energy Economics, Elsevier, vol. 36(C), pages 286-298.
    12. Adelman, M. A., 1980. "Energy-income coefficients and ratios : Their use and abuse," Energy Economics, Elsevier, vol. 2(1), pages 2-4, January.
    13. Le Pen, Yannick & Sévi, Benoît, 2010. "On the non-convergence of energy intensities: Evidence from a pair-wise econometric approach," Ecological Economics, Elsevier, vol. 69(3), pages 641-650, January.
    14. Ezcurra, Roberto, 2007. "Is there cross-country convergence in carbon dioxide emissions?," Energy Policy, Elsevier, vol. 35(2), pages 1363-1372, February.
    15. Nicholas Apergis & Christina Christou, 2016. "Energy productivity convergence: new evidence from club converging," Applied Economics Letters, Taylor & Francis Journals, vol. 23(2), pages 142-145, February.
    16. Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
    17. Farhani, Sahbi & Mrizak, Sana & Chaibi, Anissa & Rault, Christophe, 2014. "The environmental Kuznets curve and sustainability: A panel data analysis," Energy Policy, Elsevier, vol. 71(C), pages 189-198.
    18. repec:eee:eneeco:v:74:y:2018:i:c:p:427-440 is not listed on IDEAS
    19. Ghassen El-Montasser & Roula Inglesi-Lotz & Rangan Gupta, 2015. "Convergence of greenhouse gas emissions among G7 countries," Applied Economics, Taylor & Francis Journals, vol. 47(60), pages 6543-6552, December.
    20. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
    21. Borozan, Djula, 2017. "Testing for convergence in electricity consumption across Croatian regions at the consumer's sectoral level," Energy Policy, Elsevier, vol. 102(C), pages 145-153.
    22. Nilsson, Lars J., 1993. "Energy intensity trends in 31 industrial and developing countries 1950–1988," Energy, Elsevier, vol. 18(4), pages 309-322.
    23. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    24. Ben Youssef, Adel & Hammoudeh, Shawkat & Omri, Anis, 2016. "Simultaneity modeling analysis of the environmental Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 60(C), pages 266-274.
    25. Christian Haas and Karol Kempa, 2018. "Directed Technical Change and Energy Intensity Dynamics: Structural Change vs. Energy Efficiency," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
    26. Orubu, Christopher O. & Omotor, Douglason G., 2011. "Environmental quality and economic growth: Searching for environmental Kuznets curves for air and water pollutants in Africa," Energy Policy, Elsevier, vol. 39(7), pages 4178-4188, July.
    27. Parker, Steven & Liddle, Brantley, 2017. "Economy-wide and manufacturing energy productivity transition paths and club convergence for OECD and non-OECD countries," Energy Economics, Elsevier, vol. 62(C), pages 338-346.
    28. Salahuddin, Mohammad & Gow, Jeff, 2014. "Economic growth, energy consumption and CO2 emissions in Gulf Cooperation Council countries," Energy, Elsevier, vol. 73(C), pages 44-58.
    29. Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Stochastic convergence in per capita fossil fuel consumption in U.S. states," Energy Economics, Elsevier, vol. 62(C), pages 382-395.
    30. Sinton, Jonathan E. & Levine, Mark D., 1994. "Changing energy intensity in Chinese industry : The relatively importance of structural shift and intensity change," Energy Policy, Elsevier, vol. 22(3), pages 239-255, March.
    31. Markandya, Anil & Pedroso-Galinato, Suzette & Streimikiene, Dalia, 2006. "Energy intensity in transition economies: Is there convergence towards the EU average?," Energy Economics, Elsevier, vol. 28(1), pages 121-145, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Energy Intensity; Convergence Test; European Union;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:emu:wpaper:15-37.pdf. 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: (Mehmet Balcilar). General contact details of provider: http://edirc.repec.org/data/deemuty.html .

    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.