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Urbanization, openness, emissions, and energy intensity: A study of increasingly urbanized emerging economies

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  • Rafiq, Shuddhasattwa
  • Salim, Ruhul
  • Nielsen, Ingrid

Abstract

This paper analyses the impact of urbanization and trade openness on emissions and energy intensity in twenty-two increasingly urbanized emerging economies. We employ three second-generation heterogeneous linear panel models as well as recently developed nonlinear panel estimation techniques allowing for cross-sectional dependence. The empirical results show that population density and affluence increase emissions and energy intensity while renewable energy seems to be dormant in these emerging economies, but non-renewable energy increases both CO2 emissions and energy intensity. In addition, openness significantly reduces both pollutant emissions and energy intensity whereas urbanization significantly increases energy intensity, but it is insignificant in increasing emissions. This may be, in part, due to the recent increasing trend in adopting cleaner technologies in these increasingly urbanized developing economies.

Suggested Citation

  • Rafiq, Shuddhasattwa & Salim, Ruhul & Nielsen, Ingrid, 2016. "Urbanization, openness, emissions, and energy intensity: A study of increasingly urbanized emerging economies," Energy Economics, Elsevier, vol. 56(C), pages 20-28.
    • Handle: RePEc:eee:eneeco:v:56:y:2016:i:c:p:20-28
    DOI: 10.1016/j.eneco.2016.02.007
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    More about this item

    Keywords

    Emissions; Energy intensity; Urbanization; Openness; Nonlinearity;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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