On the Non-Convergence of Energy Intensities: Evidence from a Pair-Wise Econometric Approach

26 Pages Posted: 25 Jan 2009 Last revised: 18 Jan 2017

See all articles by Yannick Le Pen

Yannick Le Pen

Université Paris Dauphine

Benoît Sévi

University of Nantes

Date Written: January 22, 2009


This paper evaluates convergence of energy intensities for a group of 97 countries in the period 1971-2003. Convergence is tested using a recent method proposed by Pesaran (2007) [M.H. Pesaran. A pair-wise approach to testing for output and growth convergence. Journal of Econometrics 138, 312-355.] based on the stochastic convergence criterion. Main advantages of this method are that results do not depend on a benchmark against which convergence is assessed, and that it is more robust. Applications of several unit-root tests as well as a stationarity test uniformly reject the global convergence hypothesis. Locally, for Middle-East, OECD and Europe sub-groups, non-convergence is less strongly rejected. The introduction of possible structural breaks in the analysis only marginally provides more support to the convergence hypothesis.

Keywords: Energy intensity, pair-wise test, unit-root test, stationarity test, structural break, convergence

JEL Classification: C32, O40, Q43, Q50

Suggested Citation

Le Pen, Yannick and Sévi, Benoît, On the Non-Convergence of Energy Intensities: Evidence from a Pair-Wise Econometric Approach (January 22, 2009). Available at SSRN: https://ssrn.com/abstract=1331613 or http://dx.doi.org/10.2139/ssrn.1331613

Yannick Le Pen

Université Paris Dauphine ( email )

Place du Maréchal de Lattre de Tassigny

Benoît Sévi (Contact Author)

University of Nantes ( email )

1, quai de Tourville BP
Nantes Cedex 1
Nantes, 44313

HOME PAGE: http://www.iemniae.univ-nantes.fr/sevi-b/0/fiche___annuaireksup/

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