Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set

This paper revisits the relationship between energy intensity and economic growth, using a flexible piecewise linear regression model. Based on a panel data set of 137 economies during 1990-2014, the analysis identifies a threshold effect of income...

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Main Authors:	Deichmann, Uwe, Reuter, Anna, Vollmer, Sebastian, Zhang, Fan
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	ENERGY INTENSITY ENERGY EFFICIENCY
Online Access:	http://documents.worldbank.org/curated/en/162011517329890816/Relationship-between-energy-intensity-and-economic-growth-new-evidence-from-a-multi-country-multi-sector-data-set http://hdl.handle.net/10986/29288

id	okr-10986-29288
recordtype	oai_dc
spelling	okr-10986-292882021-06-14T10:08:43Z Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set Deichmann, Uwe Reuter, Anna Vollmer, Sebastian Zhang, Fan ENERGY INTENSITY ENERGY EFFICIENCY This paper revisits the relationship between energy intensity and economic growth, using a flexible piecewise linear regression model. Based on a panel data set of 137 economies during 1990-2014, the analysis identifies a threshold effect of income growth on energy intensity change: although energy intensity is negatively correlated with income growth throughout the entire sample and study period, the declining rate significantly slows by more than 30 percent after the level of per capita income reaches $5,000. Based on index decomposition, the analysis also finds that although structural change is important for intensity levels in all countries, the efficiency effect is more important in higher-income countries. The results suggest that when countries move beyond lower-middle-income levels, energy efficiency policies become far more critical for sustaining the rate of improvement in energy efficiency. 2018-01-31T20:12:39Z 2018-01-31T20:12:39Z 2018-01 Working Paper http://documents.worldbank.org/curated/en/162011517329890816/Relationship-between-energy-intensity-and-economic-growth-new-evidence-from-a-multi-country-multi-sector-data-set http://hdl.handle.net/10986/29288 English Policy Research Working Paper;No. 8322 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ENERGY INTENSITY ENERGY EFFICIENCY
spellingShingle	ENERGY INTENSITY ENERGY EFFICIENCY Deichmann, Uwe Reuter, Anna Vollmer, Sebastian Zhang, Fan Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
relation	Policy Research Working Paper;No. 8322
description	This paper revisits the relationship between energy intensity and economic growth, using a flexible piecewise linear regression model. Based on a panel data set of 137 economies during 1990-2014, the analysis identifies a threshold effect of income growth on energy intensity change: although energy intensity is negatively correlated with income growth throughout the entire sample and study period, the declining rate significantly slows by more than 30 percent after the level of per capita income reaches $5,000. Based on index decomposition, the analysis also finds that although structural change is important for intensity levels in all countries, the efficiency effect is more important in higher-income countries. The results suggest that when countries move beyond lower-middle-income levels, energy efficiency policies become far more critical for sustaining the rate of improvement in energy efficiency.
format	Working Paper
author	Deichmann, Uwe Reuter, Anna Vollmer, Sebastian Zhang, Fan
author_facet	Deichmann, Uwe Reuter, Anna Vollmer, Sebastian Zhang, Fan
author_sort	Deichmann, Uwe
title	Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
title_short	Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
title_full	Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
title_fullStr	Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
title_full_unstemmed	Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set
title_sort	relationship between energy intensity and economic growth : new evidence from a multi-country multi-sector data set
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/162011517329890816/Relationship-between-energy-intensity-and-economic-growth-new-evidence-from-a-multi-country-multi-sector-data-set http://hdl.handle.net/10986/29288
_version_	1764468969976102912

Relationship between Energy Intensity and Economic Growth : New Evidence from a Multi-Country Multi-Sector Data Set

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