Intangible capital and sectoral energy intensity: Evidence from 40 economies

Shenglang Yang

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: Intangible capital has been found to be an increasingly important source of productivity and economic growth. However, its effects on energy intensity have received little attention. Given the importance of reducing energy intensity, this study tests the relationship between sectoral intangible capital and sectoral energy intensity in 40 economies from 1995 to 2007 using data from World Input Output Database (WIOD). It is found that the increase in sectoral intangible capital is associated with the decline in sectoral energy intensity. The results remain robust given various forms of econometric specification (OLS, random effects, fixed effects and system GMM). Compared with previous literature, this study proposes a simple theoretical linkage between sectoral intangible capital and sectoral energy intensity, and for the first time confirms this relationship worldwide. This study also provides policies implications in promoting intangible investment and the knowledge economy.

Keywords: Intangible capital; Energy intensity; Sectoral level; World Input Output Database (search for similar items in EconPapers)
JEL-codes: O33 O50 Q40 Q57 (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-ene and nep-knm
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Persistent link: https://EconPapers.repec.org/RePEc:acb:cbeeco:2016-646

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