On the non-convergence of energy intensities: evidence from a pair-wise econometric approach

Yannick Le Pen () and Benoît Sévi

Cahiers du CREDEN (CREDEN Working Papers) from CREDEN (Centre de Recherche en Economie et Droit de l'Energie), Faculty of Economics, University of Montpellier 1

Abstract: This paper evaluates convergence of energy intensities for a group of 97 countries in the period 1971-2003. Convergence is tested using a recent method proposed by Pesaran (2007) [M.H. Pesaran. A pair- wise approach to testing for output and growth convergence. Journal of Econometrics 138, 312-355.] based on the stochastic convergence criterion. Main advantages of this method are that results do not depend on a benchmark against which convergence is assessed, and that it is more robust. Applications of several unit-root tests as well as a stationarity test uniformly reject the global convergence hypothesis. Locally, for Middle-East, OECD and Europe sub-groups, non-convergence is less strongly rejected. The introduction of possible structural breaks in the analysis only marginally provides more support to the convergence hypothesis.

Keywords: Energy intensity; pair-wise test; unit-root test; stationarity test; structural break; convergence (search for similar items in EconPapers)
JEL-codes: C32 O40 Q43 Q50 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2008
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: On the non-convergence of energy intensities: Evidence from a pair-wise econometric approach (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:mop:credwp:08.12.79

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