Resource Abundance and Energy Intensity: A Cross Country Analysis

Abstract

In this paper, attempt was made to examine the determinants of energy intensity taking cognisance of countries’ natural resource endowments. Time series data from a sample of two countries each with varying level of resource endowment was reviewed and analysed. The results of the investigation essentially show that the pattern of intensity of energy use in resource scarce countries contrast sharply to what obtained in resource abundant countries. The influence of energy prices and technological changes on intensity depends on resource endowments while many factors affecting intensity were found to be country specific. The study opines that resource abundance encourage sub-optimal use and therefore recommends appropriate pricing of energy products as well as the pursuance of effective energy demand management policies.

Keywords: Energy intensity, resource endowments, energy use, technological changes

JEL Classification: Q40