IDEAS home Printed from https://ideas.repec.org/a/ris/qjatoe/0025.html
   My bibliography  Save this article

The Effect of Government Size and Good Governance on Energy Consumption Intensity: A Case Study of OPEC Countries

Author

Listed:
  • Shahbazi, Kiumars

    (Associate Professor of Economics, Urmia University)

  • Hekmati Farid , Samad

    (Assistant Professor of Economics, Urmia University)

  • Rezaei, Hadi

    (MA Student of Economics, Urmia University)

Abstract

Due to affluence of oil and its low price in OPEC countries, energy consumption in these countries is higher than world standards. So, Management of demand side of energy and offering solutions to decrease the energy consumption have been economists’ and policy makers’ concern in energy field. The government is one of the major institutions that affect energy consumption management. Hence, this paper investigates the nonlinear effect of government size and good governance on energy consumption intensity in OPEC countries during 2002-2011 using the panel smooth transition regression (PSTR) and the variables such as industrial value added and population are used as control variables. The results show that hypothesis of linear relationship between government size, good governance and energy consumption intensity is rejected and suggested model has two regimes with one threshold level. In the first regime, the government size, good governance and population have significant and negative effect and industrial value added has significant and positive effect on energy consumption intensity. In the second regime, after the threshold level, government size and industrial value added have significant and positive effect, and population and good governance have significant and negative effect on energy consumption intensity.

Suggested Citation

  • Shahbazi, Kiumars & Hekmati Farid , Samad & Rezaei, Hadi, 2016. "The Effect of Government Size and Good Governance on Energy Consumption Intensity: A Case Study of OPEC Countries," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(4), pages 23-48, March.
    • Handle: RePEc:ris:qjatoe:0025
    as

    Download full text from publisher

    File URL: http://ecoj.tabrizu.ac.ir/article_4751_f8e6c20c5b0ff5ef5acbda1b425d83ca.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Energy Consumption Intensity; Government Size; Good Governance; PSTR;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    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:ris:qjatoe:0025. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sakineh Sojoodi (email available below). General contact details of provider: https://edirc.repec.org/data/fetabir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.