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The relationship between economic globalisation, economic complexity and patterns of energy consumption

The relationship between economic globalisation, economic complexity and patterns of energy consumption

Date21st Jan 2021

Time11:00 AM

Venue Google-meet

PAST EVENT

Details

Abstract: According to Sustainable Development Goals (2020), and International Energy Agency (2020), the dependency of energy transfers from coal and oil, to gas and renewable energy demand. Various factors affect these transfers. We assume that these energy transfers are related to economic globalisation and economic complexity. This research investigates the impact of economic globalisation and economic complexity on the patterns of energy demand across OECD economies from 1970-2015. We consider the energy transitions in the fossil fuel category, namely coal/oil and gas. We use Drics-Karry and DGMM techniques to address econometric issues such as autocorrelation, heteroscedasticity and cross-sectional dependency. These techniques also help to address the problem of endogeneity. The results of Drics-Karry and DGMM show that economic globalisation and economic complexity reduce coal and oil demand while accelerating gas demand across the OECD economies. Precisely, transaction patterns change from coal and oil to gas and renewable energy demand because of economic globalisation and economic complexity. Moreover, there is a non-linear (inverted U-shaped) relationship between economic growth and the total population on energy demand patterns in the OECD economies.

Key words: Economic Globalisation; Economic Complexity; Energy Demand; OECD economies

Speakers

Mr. Hemachandra Padhan [Roll No. HS18D008]

Department of Humanities and Social Sciences, IIT Madras - 600 036.