(Translated by https://www.hiragana.jp/)
Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results
IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i8p2625-d160082.html
   My bibliography  Save this article

Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results

Author

Listed:
  • Tiago Sequeira

    (Universidade da Beira Interior and CEFAGE-UBI, Avenida Marques d’Avila e Bolama, 6201-001 Covilhã, Portugal)

  • Marcelo Santos

    (Universidade da Beira Interior and CEFAGE-UBI, Avenida Marques d’Avila e Bolama, 6201-001 Covilhã, Portugal)

Abstract

The ratio of energy use to Gross Domestic Product (defined as energy intensity) is a major determinant of environmental hazard and an indicator of eco-efficiency. This paper explains why education can have an effect in reducing the energy intensity thus affecting eco-efficiency. We devise a stylized economic model with simple and widely accepted assumptions that highlights the role of education in decreasing energy intensity worldwide. In an empirical application that is robust to the features of the data, we show that primary schooling contributes to a decrease in energy intensity which has a very significant effect, even accounting for the other well-known determinants of energy intensity. Additionally, when schooling is taken into account, income is no longer a negative determinant of energy intensity.

Suggested Citation

  • Tiago Sequeira & Marcelo Santos, 2018. "Education and Energy Intensity: Simple Economic Modelling and Preliminary Empirical Results," Sustainability, MDPI, vol. 10(8), pages 1-17, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2625-:d:160082
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/8/2625/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/8/2625/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sequeira, Tiago Neves & Santos, Marcelo Serra, 2018. "Does country-risk influence electricity production worldwide?," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 730-746.
    2. Wu, Yanrui, 2012. "Energy intensity and its determinants in China's regional economies," Energy Policy, Elsevier, vol. 41(C), pages 703-711.
    3. Anindya Banerjee & Josep Lluís Carrion-i-Silvestre, 2017. "Testing for Panel Cointegration Using Common Correlated Effects Estimators," Journal of Time Series Analysis, Wiley Blackwell, vol. 38(4), pages 610-636, July.
    4. Horbach, Jens & Rammer, Christian & Rennings, Klaus, 2012. "Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull," Ecological Economics, Elsevier, vol. 78(C), pages 112-122.
    5. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    6. Lee, Chien-Chiang & Chang, Chun-Ping, 2007. "The impact of energy consumption on economic growth: Evidence from linear and nonlinear models in Taiwan," Energy, Elsevier, vol. 32(12), pages 2282-2294.
    7. Zsuzsanna Csereklyei, M. d. Mar Rubio-Varas, and David I. Stern, 2016. "Energy and Economic Growth: The Stylized Facts," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    8. Markus Eberhardt & Francis Teal, 2011. "Econometrics For Grumblers: A New Look At The Literature On Cross‐Country Growth Empirics," Journal of Economic Surveys, Wiley Blackwell, vol. 25(1), pages 109-155, February.
    9. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    10. Reis, Ana Balcao, 2001. "Endogenous Growth and the Possibility of Eliminating Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 360-373, November.
    11. Sideri Lefkeli & Evangelos Manolas & Konstantinos Ioannou & Georgios Tsantopoulos, 2018. "Socio-Cultural Impact of Energy Saving: Studying the Behaviour of Elementary School Students in Greece," Sustainability, MDPI, vol. 10(3), pages 1-14, March.
    12. Eberhardt, Markus & Presbitero, Andrea F., 2015. "Public debt and growth: Heterogeneity and non-linearity," Journal of International Economics, Elsevier, vol. 97(1), pages 45-58.
    13. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    14. Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
    15. Chudik, Alexander & Pesaran, M. Hashem, 2015. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
    16. Mulder, Peter & de Groot, Henri L.F. & Pfeiffer, Birte, 2014. "Dynamics and determinants of energy intensity in the service sector: A cross-country analysis, 1980–2005," Ecological Economics, Elsevier, vol. 100(C), pages 1-15.
    17. Galor, Oded, 2005. "From Stagnation to Growth: Unified Growth Theory," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 4, pages 171-293, Elsevier.
    18. Steger, Thomas M., 2000. "Economic growth with subsistence consumption," Journal of Development Economics, Elsevier, vol. 62(2), pages 343-361, August.
    19. Arnold, Lutz G., 1998. "Growth, Welfare, and Trade in an Integrated Model of Human-Capital Accumulation and Research," Journal of Macroeconomics, Elsevier, vol. 20(1), pages 81-105, January.
    20. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    21. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    22. David E. Rapach, 2002. "Are Real GDP Levels Nonstationary? Evidence from Panel Data Tests," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 473-495, January.
    23. Stamatios Ntanos & Grigorios L. Kyriakopoulos & Garyfallos Arabatzis & Vasilios Palios & Miltiadis Chalikias, 2018. "Environmental Behavior of Secondary Education Students: A Case Study at Central Greece," Sustainability, MDPI, vol. 10(5), pages 1-22, May.
    24. Alexandra Ferreira-Lopes & Tiago Neves Sequeira & Catarina Roseta-Palma, 2013. "On the effect of technological progress on pollution: an overlooked distortion in endogenous growth," Oxford Economic Papers, Oxford University Press, vol. 65(2), pages 394-416, April.
    25. Sahu, Santosh & Narayanan, K, 2010. "Determinants of Energy Intensity in Indian Manufacturing Industries: A Firm Level Analysis," MPRA Paper 21646, University Library of Munich, Germany.
    26. Liobikienė, Genovaitė & Butkus, Mindaugas, 2017. "Environmental Kuznets Curve of greenhouse gas emissions including technological progress and substitution effects," Energy, Elsevier, vol. 135(C), pages 237-248.
    27. Lazear, Edward P, 1977. "Education: Consumption or Production?," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 569-597, June.
    28. Kris Van den Branden, 2015. "Sustainable Education: Exploiting Students’ Energy for Learning as a Renewable Resource," Sustainability, MDPI, vol. 7(5), pages 1-17, May.
    29. Chang, Shu-Chen, 2015. "Effects of financial developments and income on energy consumption," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 28-44.
    30. Viscusi, W Kip & Evans, William N, 1990. "Utility Functions That Depend on Health Status: Estimates and Economic Implications," American Economic Review, American Economic Association, vol. 80(3), pages 353-374, June.
    31. Joanne Evans & Lester C. Hunt (ed.), 2009. "International Handbook on the Economics of Energy," Books, Edward Elgar Publishing, number 12764.
    32. Manuel A. Gómez & Tiago Neves Sequeira, 2014. "Should the US increase subsidies to R&D? Lessons from an endogenous growth theory," Oxford Economic Papers, Oxford University Press, vol. 66(1), pages 254-282, January.
    33. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    34. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    35. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
    36. Shin-Cheng Yeh & Jing-Yuan Huang & Hui-Ching Yu, 2017. "Analysis of Energy Literacy and Misconceptions of Junior High Students in Taiwan," Sustainability, MDPI, vol. 9(3), pages 1-29, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Qunli Wu & Hongjie Zhang, 2019. "Research on Optimization Allocation Scheme of Initial Carbon Emission Quota from the Perspective of Welfare Effect," Energies, MDPI, vol. 12(11), pages 1-27, June.
    2. Chao Bi & Minna Jia & Jingjing Zeng, 2019. "Nonlinear Effect of Public Infrastructure on Energy Intensity in China: A Panel Smooth Transition Regression Approach," Sustainability, MDPI, vol. 11(3), pages 1-21, January.
    3. Amro M Elshurafa & Abdel Rahman Muhsen, 2019. "The Upper Limit of Distributed Solar PV Capacity in Riyadh: A GIS-Assisted Study," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    4. Jacek Brożyna & Grzegorz Mentel & Eva Ivanová & Gennadii Sorokin, 2019. "Classification of Renewable Sources of Electricity in the Context of Sustainable Development of the New EU Member States," Energies, MDPI, vol. 12(12), pages 1-22, June.
    5. Guang, Fengtao & He, Yongxiu & Wen, Le & Sharp, Basil, 2019. "Energy intensity and its differences across China’s regions: Combining econometric and decomposition analysis," Energy, Elsevier, vol. 180(C), pages 989-1000.
    6. Hua Huang & Daizhong Su & Wenjie Peng & You Wu, 2020. "Development of a Mobile Application System for Eco-Accounting," Sustainability, MDPI, vol. 12(22), pages 1-24, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sequeira, Tiago Neves & Santos, Marcelo Serra, 2018. "Does country-risk influence electricity production worldwide?," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 730-746.
    2. Markus Eberhardt & Francis Teal, 2008. "Modeling Technology and Technological Change in Manufacturing: How do Countries Differ?," CSAE Working Paper Series 2008-12, Centre for the Study of African Economies, University of Oxford.
    3. Naima Chrid & Sami Saafi & Mohamed Chakroun, 2021. "Export Upgrading and Economic Growth: a Panel Cointegration and Causality Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(2), pages 811-841, June.
    4. Quynh Chau Pham Holland & Benjamin Liu & Eduardo Roca, 2019. "International funding cost and heterogeneous mortgage interest-rate pass-through: a bank-level analysis," Empirical Economics, Springer, vol. 57(4), pages 1255-1289, October.
    5. Elisabet Rodriguez Llorian & Janelle Mann, 2022. "Exploring the technology–healthcare expenditure nexus: a panel error correction approach," Empirical Economics, Springer, vol. 62(6), pages 3061-3086, June.
    6. Mirkina, Irina, 2018. "FDI and sanctions: An empirical analysis of short- and long-run effects," European Journal of Political Economy, Elsevier, vol. 54(C), pages 198-225.
    7. Tiago Neves Sequeira & Marcelo Santos & Alexandra Ferreira-Lopes, 2017. "Income Inequality, TFP, and Human Capital," The Economic Record, The Economic Society of Australia, vol. 93(300), pages 89-111, March.
    8. Sequeira Tiago Neves, 2017. "Democracy and income: taking parameter heterogeneity and cross-country dependency into account," The B.E. Journal of Macroeconomics, De Gruyter, vol. 17(2), pages 1-19, June.
    9. Markus Eberhardt & Andrea Filippo Presbitero, 2013. "This Time They're Different: Heterogeneity;and Nonlinearity in the Relationship;between Debt and Growth," Mo.Fi.R. Working Papers 92, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    10. Abrams M. E. Tagem, 2023. "The dynamic effects of aid and taxes on government spending," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 30(6), pages 1656-1687, December.
    11. Philip Kerner & Torben Klarl & Tobias Wendler, 2021. "Green Technologies, Environmental Policy and Regional Growth," Bremen Papers on Economics & Innovation 2104, University of Bremen, Faculty of Business Studies and Economics.
    12. Skare, Marinko & Ozturk, Ilhan & Porada-Rochoń, Małgorzata & Stjepanovic, Sasa, 2024. "Energy as the new frontier: Dynamic panel data analysis revealing energy's transformative role in economic growth and technological progress," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    13. Markus Eberhardt & Francis Teal, 2010. "Aggregation versus Heterogeneity in Cross-Country Growth Empirics," CSAE Working Paper Series 2010-32, Centre for the Study of African Economies, University of Oxford.
    14. Hector Sala & Pedro Trivín, 2018. "The effects of globalization and technology on the elasticity of substitution," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 617-647, August.
    15. Gonzalez, Ignacio & Trivin, Pedro, 2019. "The Global Rise of Asset Prices and the Decline of the Labor Share," MPRA Paper 94587, University Library of Munich, Germany.
    16. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2020. "Energy intensity and green energy innovation: Checking heterogeneous country effects in the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 328-343.
    17. Liddle, Brantley & Huntington, Hillard, 2021. "How prices, income, and weather shape household electricity demand in high-income and middle-income countries," Energy Economics, Elsevier, vol. 95(C).
    18. Edziah, Bless Kofi & Sun, Huaping & Adom, Philip Kofi & Wang, Feng & Agyemang, Andrew Osei, 2022. "The role of exogenous technological factors and renewable energy in carbon dioxide emission reduction in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 196(C), pages 1418-1428.
    19. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    20. Mika, Alina & Zumer, Tina, 2017. "Indebtedness in the EU: a drag or a catalyst for growth?," Working Paper Series 2118, European Central Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:10:y:2018:i:8:p:2625-:d:160082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.