Economics at your fingertips  

Modelling the relationship between energy intensity and GDP for European countries: An historical perspective (1800–2000)

Massimiliano Agovino, Silvana Bartoletto and Antonio Garofalo

Energy Economics, 2019, vol. 82, issue C, 114-134

Abstract: In this paper we discuss an original article by Gales et al. (2007) concerning the relationship between total energy intensity and GDP per capita. In their chiefly descriptive analysis of four European countries (Sweden, the Netherlands, Italy and Spain) over the last two centuries, no inverted U-curve relationship was found between total energy intensity (sum of traditional and modern energy sources) and GDP per capita. By contrast, in addition to considering total energy intensity we also distinguish between modern energy intensity and traditional energy intensity. Further, we integrate qualitative analysis with empirical analysis (i.e., the ARDL cointegration procedure) in order to make our results more robust. The main conclusions of Gales et al. (2007) are only partially confirmed: considering total energy intensity can lead to erroneous conclusions. In particular, our estimates show a U-shaped relationship between total energy intensity and GDP per capita. In addition, when we decompose total energy intensity, two different relationships emerge: a hyperbolic pattern (traditional energy carriers) and a U-shaped inverse pattern (modern energy carriers). We conclude that the decreasing branch of the U-shaped relationship between total energy intensity and GDP per capita is driven by traditional energy sources when the latter dominate modern energy sources (low levels of GDP per capita). In contrast, the ascending branch of the U-shaped relationship is driven by modern energy sources when prevailing over traditional sources (high levels of GDP per capita).

Keywords: Replication; Europe: Pre-1913; Time-series models; Energy sources (search for similar items in EconPapers)
JEL-codes: N53 C21 Q4 Q43 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: 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:

DOI: 10.1016/j.eneco.2018.02.017

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 Haili He ().

Page updated 2020-06-08
Handle: RePEc:eee:eneeco:v:82:y:2019:i:c:p:114-134