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The impact of urbanization on energy consumption and efficiency

Pengfei Sheng, Yaping He and Xiaohui Guo

Energy & Environment, 2017, vol. 28, issue 7, 673-686

Abstract: There is no consensus about the impact of urbanization on energy efficiency. We seek to fill this gap in literature using data from 78 countries for the period of 1995 through 2012. Extending the Stochastic Impacts by Regression on Population, Affluence, and Technology model, we identify the impact of urbanization on energy consumption and efficiency. Results of generalized method of moments estimation indicate that the process of urbanization leads to substantial increases in both the actual and the optimal energy consumption, but a decrease in efficiency of energy use. In addition, we find that the extent to which energy inefficiency correlates with urbanization is greater in countries with higher gross domestic product per capita.

Keywords: Urbanization; energy consumption; energy efficiency; extended Stochastic Impacts by Regression on Population; Affluence; and Technology model; generalized methods of moments estimation (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:sae:engenv:v:28:y:2017:i:7:p:673-686