Energy productivity convergence: new evidence from club converging

Abstract

The goal of this study is to explore the convergence of energy productivity across 31 countries from 1972 to 2012 by using the convergence club algorithm developed by Phillips and Sul (2007). The empirical results lead to the rejection of full convergence and to the presence of a certain number of clubs. The transitional curves, however, indicate that over the long run energy productivity tends to converge, indicating the strong attempts of the countries under investigation to adopt energy policies that eventually contribute to a convergence pattern.

Keywords:

• Energy productivity
• club converging
• transition curves
• 31 countries

JEL Classification:

• Q40
• C33