Energy Intensity Convergence in OECD Countries
This paper investigates the energy intensity convergence for 21 OECD countries over the period 1980-2010. To achieve this aim, fractional cointegration definition suggested by Cheung and Lai (1993), which requires only a mean reverting ( d < 1) relationship between a set of I(1) variables, is...
Published in: | Energy Exploration & Exploitation |
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Main Author: | |
Format: | Article in Journal/Newspaper |
Language: | English |
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SAGE Publications
2013
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Online Access: | http://dx.doi.org/10.1260/0144-5987.31.2.237 http://journals.sagepub.com/doi/pdf/10.1260/0144-5987.31.2.237 |
Summary: | This paper investigates the energy intensity convergence for 21 OECD countries over the period 1980-2010. To achieve this aim, fractional cointegration definition suggested by Cheung and Lai (1993), which requires only a mean reverting ( d < 1) relationship between a set of I(1) variables, is used. Following their suggestion, we employ Geweke and Porter-Hudak test for estimating the fractional parameter of the residuals obtained from cointegrating regressions. The results reveal the presence of energy intensity convergence for 9 countries namely Canada, Chile, Denmark, Finland, Germany, Iceland, Ireland, the Netherlands and Turkey. |
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