Electricity consumption and economic development: Are countries converging to a common trend?

Young Se Kim

Energy Economics, 2015, vol. 49, issue C, 192-202

Abstract: This paper studies the dynamic behavior of electricity consumption with special emphasis on their convergence patterns. Individual electricity indicators are modeled by allowing for apparent heterogeneous transitions. Log t convergence test results indicate that all 109 countries converge to a common stochastic trend for electricity intensity while per capita electricity consumption is better explained by a multiple-component model. In the case of 24 advanced economies, there is a strong tendency towards a common component for both indicators. The application of clustering algorithm confirms the presence of club convergence for per capita electricity consumption. In terms of clustering pattern, per capita electricity consumption appears to be remarkably similar to per capita income, widely used measure of economic development.

Keywords: Relative convergence; Clustering analysis; Electricity intensity; Electricity consumption; Economic development; Income convergence (search for similar items in EconPapers)
JEL-codes: C23 C38 O13 O15 Q43 Q48 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:49:y:2015:i:c:p:192-202

DOI: 10.1016/j.eneco.2015.02.001

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