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The energy transition of the transition economies: An empirical analysis

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  • Zhang, Fan

Abstract

The aggregate manufacturing energy intensity of 28 countries in Eastern Europe and Central Asia had declined by 35% during 1998–2008. This study reveals a strong evidence of convergence: less efficient countries improved more rapidly and the cross-country variance in energy productivity narrowed over time. An index decomposition analysis indicates that energy intensities declined largely because of more efficient energy use rather than shifts from energy intensive to less intensive manufacturing activities. Income growth and energy price increases were the main drivers of the convergence. They dominated the impact of trade, which led to specialization in energy intensive industries.

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  • Zhang, Fan, 2013. "The energy transition of the transition economies: An empirical analysis," Energy Economics, Elsevier, vol. 40(C), pages 679-686.
    • Handle: RePEc:eee:eneeco:v:40:y:2013:i:c:p:679-686
    DOI: 10.1016/j.eneco.2013.09.001
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    More about this item

    Keywords

    Manufacturing energy intensity; Energy productivity convergence; Index decomposition analysis; Trade; Eastern Europe and Central Asia;
    All these keywords.

    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
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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