Understanding Energy Consumption Pattern Across the Globe

Abstract

This dissertation explains the pattern of energy consumption across the globe. Chapters 2, 3 and 4, examine respectively the energy-income relationship for developing and developed countries, decomposition analysis of energy consumption, and the relationship of energy intensity with per capita income to determine the possible existence of threshold levels of per capita income at which the nature of relationship is altered. The findings from chapter 2 confirm the presence of a positive relationship between energy consumption per capita and real GDP per capita for developing and developed countries. However, to what extent energy consumption per capita affects real GDP per capita varies both between and within the two categories of countries. Chapter three findings indicate that efficiency component/effect and activity/effect component are considerably a significant drivers relative to structural component to drive the energy consumption in most of the countries considered in our study. Further, efficiency effect (sectoral energy intensities) as compare to structural effect has a positive contribution in reducing aggregate energy intensity in most of the countries. In addition to that, the determinants of energy efficiency component are investigated. The findings show that the energy efficiency improves due increase in tertiary education and labor productivity. The result of chapter four shows that there exists a non-linear relationship between energy intensity and real GDP per capita in the middle income and high income countries which are considered in the third study. The dissertation concludes with Chapter Five