Abstract
In this study, we examine the energy intensity convergence in OECD countries within the context of recent developments in unit root analysis by paying attention to modeling structural shifts. We collect the total primary energy consumption/GDP data of 27 OECD countries during the period 1980–2014. The findings indicate that controlling for shifts plays a crucial role, and different approximations in modeling breaks lead to changes in inferences. In conclusion, we present some policy proposals.
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Notes
The inferences of standard methods are valid under these conditions: the economies must have identical first-order autoregressive dynamic structures and all explanatory variables control for all permanent cross-country differences.
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Appendix
Appendix
Energy intensity levels of the countries in the sample
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Bulut, U., Durusu-Ciftci, D. Revisiting energy intensity convergence: new evidence from OECD countries. Environ Sci Pollut Res 25, 12391–12397 (2018). https://doi.org/10.1007/s11356-018-1551-z
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DOI: https://doi.org/10.1007/s11356-018-1551-z