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Abstract(s)
The transformation of economies and societies associated with technological advances made
during the 20th century has not only significantly increased global energy consumption but
also placed greater pressure upon production using non-renewable sources. Such circumstances
have generated new challenges and urged governments as well as firms to identify and promote
new sources of renewable energy. In response to those trends, the chief objective of the study
reported here was to analyse the current global framework of the production and consumption
of energy obtained from different origins in order to identify opportunities and constraints
regarding energy production and consumption that exist among various countries. To that
end, data from the World Bank regarding the production and consumption of global energy
were analysed in light of the neoclassical and endogenous growth theories of absolute and conditional
convergence, respectively, and in terms of panel data models. To reconcile the availability
of data across the various countries, data for the period 1990–2013 were used. The data show
signs of relevant dispersion among countries and evidence of sigma convergence in the majority
of variables associated with global energy supply and demand. Conversely, other evidence indicates
a significant absolute convergence of the global production and consumption of energy.
Put differently, although significant differences in energy production and consumption among the
world’s countries exist, so do signs of convergence, namely, that lower values in some countries
are by way of approximation of those verified in countries with higher values. That situation is not
necessarily detrimental in terms of renewable sources of energy; however, it is not the case in
every context (in some cases the convergence is for the fossil fuel energy, for example). From a
strategic perspective, the results recommend policies better customised at the various levels of
decision making to promote renewable sources of energy.
Description
Keywords
Energy world production and consumption neoclassical theory absolute convergence econometrics