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Investigating the Effects of Government Size and Quality on Energy Intensity in Selected OECD Countries
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Abstract: (5125 Views) |
Investigation of factors that effect energy intensity in selected Organization for Economic Cooperation and Development (OECD) member countries provides suggestions for more efficient use of energy and greater energy security in these countries. It can also help developing countries to find ways to reduce energy consumption. To this end, we investigate the effects of government size and quality on energy intensity in OECD countries from 2002 to 2014. We study the nonlinear effect of government size and quality on energy intensity using panel smooth transition model (PSTR). Our findings do not support the hypothesis of a linear relationship between government size and energy intensity. They rather indicate the existence of a two-regime model with one threshold. Up to a certain threshold of government size, government size and industrial value added have positive and significant effect on energy intensity, and government quality and energy price have negative and significant effect. Beyond this threshold, government size, industrial value added and energy price have positive and significant effect and government quality has negative and significant effect on energy intensity. We can thus conclude that while government size tends to increase energy intensity, quality of government can counteract this effect and this positive contribution becomes more marked the larger the size of government.
JEL Classification: Q40, Q43, Q48.
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| Keywords: Energy Intensity, Government Size, Government Quality, OECD, PSTR. |
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Full-Text [PDF 893 kb]
(1812 Downloads)
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Type of Study: Thesis(M.A.) |
Subject:
Energy Economic
Received: 2016/04/21 | Accepted: 2017/02/28 | Published: 2017/06/24 | ePublished: 2017/06/24
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