Structural Transformation and Energy Intensity in Emerging Markets and Developing Economies

I. Wayan Suparta (), Imam Awaluddin (), Tiara Nirmala (), Asih Murwiati (), Heru Wahyudi () and Sandra Mei Leny ()
Additional contact information
I. Wayan Suparta: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia
Imam Awaluddin: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia
Tiara Nirmala: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia
Asih Murwiati: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia
Heru Wahyudi: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia
Sandra Mei Leny: Faculty of Economics and Business, University of Lampung, Bandar Lampung, Indonesia

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 5, 349-358

Abstract: Improving energy efficiency is one of the key pillars in the transition to a low-carbon economy and sustainable development. However, amidst increasing urbanisation, labour force growth and renewable energy adoption, energy intensity in emerging markets and developing economies (EMDEs) is still showing a stagnant trend. This indicates the existence of non-sectoral structural dynamics that have not been fully identified in previous literature. This research is motivated by the urgent need to quantitatively examine how demographic transformation and clean energy affect national energy efficiency in Emerging Markets and Developing Economies. This study aims to analyse the influence of urban population (% of total population), labour force participation rate (% of working age population), and renewable energy consumption (% of total final energy consumption) on the energy intensity level of primary energy in 25 EMDEs countries over the period 2017-2021. Based on previous theoretical studies and empirical trends, it is hypothesised that urbanisation and renewable energy consumption reduce energy intensity, while labour force participation tends to increase energy intensity if not accompanied by sectoral and technological reforms. The research methodology uses panel data regression approach with Fixed Effect Model. The analysis shows that partially, urban population and renewable energy consumption have a negative and significant effect on energy intensity, while labour force participation rate shows a positive and significant effect. Simultaneously, the three variables have a significant effect on energy intensity. The coefficient of determination (R2) of 0.991589 indicates that 99.15% of the variation in energy intensity can be explained by the variation in the three independent variables. This finding confirms the importance of policy formulation that integrates demographic structural transformation and renewable energy transition to sustainably reduce energy intensity in EMDEs countries.

Keywords: Energy Intensity; Urbanisation; Labour Force Participation; Renewable Energy; Structural Transformation; Emerging Markets and Developing Economies (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://econjournals.com/index.php/ijeep/article/download/19823/9155 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:v:15:y:2025:i:5:id:19823

Ordering information: This journal article can be ordered from
https://econjournals.com/index.php/ijeep

DOI: 10.32479/ijeep.19823

Access Statistics for this article

More articles in International Journal of Energy Economics and Policy from International Journal of Energy Economics and Policy
Bibliographic data for series maintained by Monica Sinhat ().