The impact of economic complexity on energy demand in OECD countries

Fang, Jianchun; Gözgör, Giray; Mahalik, Mantu Kumar; Padhan, Hemachandra; Xu, Ruihui

doi:10.1007/s11356-020-12089-w

Cited by 55 publications

(17 citation statements)

References 46 publications

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“…Figures 1 and 2 provide a visual summary of these findings for developing and developed countries, respectively. The results for developed countries confirm the results of Fang et al (2021), while our findings for developing countries are in line with Azizi (2019), Nawaz et al (2020), andCan et al (2021).…”

Section: Empirical Findingssupporting

confidence: 90%

“…Fang et al. (2021) evaluated the impact of economic complexity on energy use in the sample of OECD countries and found that economic complexity has a mitigating function in energy use. Finally, Can et al.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Only a few authors address that concern (in a limited way). Nawaz et al (2020) and Azizi (2019), for example, focused on one country only (Pakistan and Iran, respectively), while Fang et al (2021) and Can et al (2021) considered a limited set of developed or developing countries, respectively. Finally, this paper is the first to study the impact of economic complexity on energy consumption for developed and developing country groups simultaneously.…”

Section: J E L C L a S S I F I C A T I O Nmentioning

confidence: 99%

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The effect of export composition on energy demand: A fresh evidence in the context of economic complexity

Can¹,

Brusselaers

Mercan

2022

Review Development Economics

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Energy is pivotal for sustainable economic growth. Undoubtedly, the role of the composition of the export basket (measured as economic complexity) is one of the crucial variables influencing energy consumption. Despite its importance, the existing body of literature does not intensively study the relationship between economic complexity and total energy consumption. Therefore, this study's primary aim was to examine the effect of economic complexity on energy consumption in a case study of 21 developed and 44 developing countries for the period 1971–2014. In this context, economic complexity expresses the level of sophistication of a country's export basket. This paper considers energy prices and income as explanatory variables in Durbin‐H panel cointegration analysis and applies a cointegration test with structural breaks to check for the long‐run relationships. For the long‐run estimations, we employ the augmented mean group method and dynamic seemingly unrelated regression. The findings reveal that economic complexity increases energy consumption in developing countries while it decreases energy consumption in developed countries. This is an important insight for countries concerned about their energy dependence. The diversification of their production and export baskets can reduce energy needs. The paper finally presents policy recommendations based on the empirical estimates.

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Section: Empirical Findingssupporting

confidence: 90%

Section: Literature Reviewmentioning

confidence: 99%

Section: J E L C L a S S I F I C A T I O Nmentioning

confidence: 99%

See 1 more Smart Citation

The effect of export composition on energy demand: A fresh evidence in the context of economic complexity

Can¹,

Brusselaers

Mercan

2022

Review Development Economics

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“…Fang et al ( 2020 ) used Baidu keyword search volume data to improve the volatility prediction of the Chinese stock market. (Gozgor et al, 2019 ; Jiang et al, 2020 ; Liu et al, 2020 ; Fang et al, 2021a , b ; Wu et al, 2021 ) discussed the impact of economic uncertainty, complexity, COVID-19 and globalization on the economy and financial markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Investor Sentiment and Stock Returns During the COVID-19 Pandemic

et al. 2021

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In this paper, we regard the Baidu index as an indicator of investors' attention to China's epidemic stocks. We believe that when seeking information to guide investment decisions, investor sentiment is usually affected by the information provided by the Baidu search engine, which may cause stock prices to fluctuate. Therefore, we constructed a GARCH extended model including the Baidu index to predict the return of epidemic stocks and compared it with the benchmark model. The empirical research in this paper finds that the forecast model including the Baidu index is significantly better than the benchmark model. This has important reference value both for investors in predicting stock trends and for the government's formulation of policies to prevent excessive stock market volatility.

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“…Second, the STIRPAT framework avoids the quadratic transformation of nonstationary variables. Finally, the STIRPAT framework model relaxes the underlying assumption that environmental impact population elasticity is united by not scaling environmental and other covariates by population (Fang et al, 2021;Liddle, 2014). Accordingly, we utilize the STIRPAT model, which takes the following form:…”

Section: Stirpat Modelmentioning

confidence: 99%

Effects of Age Dependency and Urbanization on Energy Demand in BRICS: Evidence From the Machine Learning Estimator

Mahalik

Padhan

et al. 2021

Front. Energy Res.

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This paper examines the effects of age dependency ratio (the young age, old-age and overall age) and urbanization on renewable and non-renewable energy consumption in Brazil, India, China, and South Africa, considering the panel data from 1990 to 2019. We control economic growth and foreign direct investment inflows as key factors in the energy demand function using the Stochastic Impacts by Regression on Population, Affluence and Technology approach. Empirical analysis has been implemented using the Kernel Regularized Least Squares machine learning method to solve possible classification problems in the traditional regressions without relying on the linearity assumption. It is observed that the young age dependency, overall age dependency, and urbanization negatively affect both renewable and non-renewable energy demand. On the contrary, old-age dependency and economic growth are positively associated with renewable and non-renewable energy demand. The mixed effects of foreign direct investment inflows on renewable and non-renewable energy demand patterns are also found. Thus, the findings suggest that environment policymakers in the BRICS economies should prioritize urbanization, young age, and overall age population to improve energy efficiency.

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The impact of economic complexity on energy demand in OECD countries

Cited by 55 publications

References 46 publications

The effect of export composition on energy demand: A fresh evidence in the context of economic complexity

The effect of export composition on energy demand: A fresh evidence in the context of economic complexity

Investor Sentiment and Stock Returns During the COVID-19 Pandemic

Effects of Age Dependency and Urbanization on Energy Demand in BRICS: Evidence From the Machine Learning Estimator

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