Title: The effect of government expenditure on energy intensity: a panel smooth transition regression (PSTR) approach

Authors: Mohammad Movahedi; Kiumars Shahbazi; Samad Hekmati Farid

Addresses: Centre for Research in Economics and Management (CREM), University of Caen Normandy, Caen, France ' Faculty of Economics and Management, Urmia University, Urmia, Iran ' Faculty of Economics and Management, Urmia University, Urmia, Iran

Abstract: Energy is considered a significant factor for sustainable development, and governments are faced some challenges such as the expenses involved in running the economy and how to perform such costs for reducing the energy intensity and provide energy efficiency. This article investigates government expenditure impact on the energy intensity on top ten European crude oil-exporting countries during 1995-2014. The results confirm the non-linear effect of government expenditure per GDP on the energy intensity with one threshold parameter. Findings indicate that government expenditure impact per GDP on energy intensity is significantly negative at low government expenditure (at first regime) and positive at the high government expenditure (at second regime). The positive and increasing effect of government expenditure on the energy sector in the second regime shows that the government intervention at macro-programs and the high government size can hike up energy intensity.

Keywords: government expenditure per GDP; energy intensity; PSTR; European crude oil-exporting countries.

DOI: 10.1504/IJGEI.2022.123975

International Journal of Global Energy Issues, 2022 Vol.44 No.4, pp.292 - 310

Received: 14 Aug 2020
Accepted: 22 Apr 2021
Published online: 05 Jul 2022 *

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