Economics at your fingertips  

Does the level of energy intensity matter in the effect of energy consumption on the growth of transition economies? Evidence from dynamic panel threshold analysis

Celil Aydin and Omer Esen ()

Energy Economics, 2018, vol. 69, issue C, 185-195

Abstract: This study investigates whether the effect of energy consumption on economic growth differs by the level of energy intensity. We employ an advanced dynamic panel threshold regression model to test for the “threshold” level of energy intensity that has an asymmetrical energy consumption effect on economic growth; we consider 12 Commonwealth of Independent States countries over the period 1991–2013. The estimated panel threshold regression model suggests 0.44% as the threshold level of energy intensity. Energy consumption above this level significantly retards economic growth, whereas energy consumption below the level is found to have a statistically significant positive effect on economic growth. Thus, when the threshold level of energy intensity (one of the important indicators of energy efficiency) is exceeded, energy consumption significantly hinders growth. If policy makers pay more attention to energy intensity while formulating new energy policies, substantial gains can be achieved in low energy intensity environments.

Keywords: Dynamic panel threshold analysis; Energy consumption; Economic growth; Energy intensity (search for similar items in EconPapers)
JEL-codes: C24 Q43 O11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-07-22
Handle: RePEc:eee:eneeco:v:69:y:2018:i:c:p:185-195