Electricity Intensity Convergence in the OECD Countries
This paper analyzes the dynamics of electricity intensity – i.e., the ratio of electricity consumption to gross domestic product – in the OECD countries for the period 1990–2017. In particular, it analyzes electricity intensity dynamics against the background of different subgroups (or ”clubs”) of the OECD countries, changes in electricity prices, and the industrial structure of the economy. The main results are that general electricity intensity convergence in all OECD countries has decreased in recent years, yet club convergence in subgroups of OECD countries continues, and that the role of the economy’s industrial structure and electricity prices in these trends are negligible. The main driver of the dynamics and convergence of electricity intensity is electricity efficiency at the industry level.
Keywords: Electricity demand, Electricity intensity, Convergence, Club convergence, Decomposition, Structural transformation, Electricity prices.
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