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Drivers of residential energy intensity convergence: A dynamic panel data analysis

Subhasis Bera, Qasim Raza Syed and Dil Bahadur Rahut

Energy, 2025, vol. 316, issue C

Abstract: Transitioning towards cleaner energy resources to mitigate environmental degradation relies significantly on enhancing energy efficiency. This strategic pursuit focuses on the sectoral composition of an economy, with particular emphasis on reducing residential energy intensity, as displacing emissions from residential sources presents significant challenges. While efforts to equalise energy intensity through technological advancements are underway, this study employs club convergence analysis to demonstrate the absence of global convergence but the presence of club convergence dynamics. In the second stage of the study, examination reveals no significant club-specific dynamics affecting per capita residential energy intensity. In contrast, net inland energy consumption impacts a specific subset of countries, indicating that lower energy consumption improves residential energy intensity. Furthermore, findings indicate that climate change and the adoption of renewable energy sources substantially influence residential energy intensity, underscoring the importance for policymakers to prioritise initiatives that promote the utilisation of renewable energy.

Keywords: Energy intensity; Club convergence; Dynamic panel data; Unit root test; Residential energy intensity (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:316:y:2025:i:c:s036054422500026x

DOI: 10.1016/j.energy.2025.134384

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