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A club convergence analysis of per capita energy consumption across Australian regions and sectors

Kris Ivanovski, Sefa Awaworyi Churchill and Russell Smyth ()

Energy Economics, 2018, vol. 76, issue C, 519-531

Abstract: We examine convergence in per capita energy consumption across nine sectors and seven states and territories in Australia over the period 1990–2016 using the Phillips-Sul club convergence approach. We find evidence of multiple convergence clubs for aggregate energy consumption per capita and for energy consumption per capita in eight of the nine sectors with full club convergence in the case of electricity. The presence of multiple equilibria for most sectors reflect that states with similar features in terms of climate, economic activities and population size, among others, tend to exhibit similar energy consumption patterns. Our results highlight the need to tailor policies designed to reduce energy consumption in specific sectors to the consumption convergence paths unique to particular clusters of states.

Keywords: Energy consumption; Club convergence/clustering; Australia (search for similar items in EconPapers)
JEL-codes: C50 Q40 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1016/j.eneco.2018.10.035

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

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