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Towards a sustainable energy scenario? A worldwide analysis

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  • González-Álvarez, María A.
  • Montañés, Antonio
  • Olmos, Lorena

Abstract

This paper studies the worldwide evolution of energy intensity for a large sample of countries during the period 1990–2015, differentiating between non-renewable, non-clean and total energy intensity. This division allows us to establish more precise policy recommendations which, along with the use of the Phillips and Sul (2009) methodology, provides the novelty of the analysis. Our results refute recent evidence favouring the hypothesis of global convergence for all types of energy intensity. Grouping countries either by regions or by income level, the evidence against this hypothesis remains overwhelming, with very few exceptions. Nonetheless, we can observe the presence of several convergence clubs, whose creation strongly depends on energy prices as well as on external energetic dependency. In any event, results relating to the different types of energy intensity are varied, suggesting that previous policy recommendations aimed at tackling climate change based on total energy intensity analyses are questionable.

Suggested Citation

  • González-Álvarez, María A. & Montañés, Antonio & Olmos, Lorena, 2020. "Towards a sustainable energy scenario? A worldwide analysis," Energy Economics, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:eneeco:v:87:y:2020:i:c:s0140988320300773
    DOI: 10.1016/j.eneco.2020.104738
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    More about this item

    Keywords

    Energy intensity; Convergence; Clubs; Phillips-Sul; Sustainability;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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