Energy consumption is defined as one of the main determinants of environmental degradation. Therefore, this issue becomes one of the main points of debate to achieve sustainable development. This research examines how a set of economic factors determine the energy consumption in Organization for Economic Cooperation and Development countries, for which second-generation econometric methods have been used that control cross-sectional dependence issues. Therefore, the results, using nonlinear methods, suggest the presence of Jevons' paradox in these countries. However, under the Jevons' paradox scenario, technological innovation becomes a factor that mitigates energy demand. Contrary to the foreign direct investment that contributes significantly to the increase in energy consumption, from the results found, some policy implications are derived in the framework of achieving sustainable development.
|Journal||Journal of Petroleum Exploration and Production Technology|
|State||Accepted/In press - 2022|
Bibliographical noteFunding Information:
The author Ateeq Ur Rehman Irshad would like to thank Prince Sultan University for paying the APC and the support through TAS research laboratory.
This research is supported by the Beijing Key Laboratory of Urban Spatial Information Engineering (No. 20210218).
© 2022, The Author(s).
- Energy efficiency
- Environmental policy
- Jevons' paradox
- Nonlinear analysis
- Sustainable development
- Technological innovation