Investigating the Impact of Financial Development on Energy Intensity: A Dynamic Spatial Panel Approach

Hameed Abed, Dhulfiqar Hameed Abed; Mohammadzadeh, Yousef; Rezazadeh, Ali

doi:10.30473/egdr.2024.70186.6807

Document Type : ORIGINAL ARTICLE

Authors

¹ Ph.D. Candidate, Faculty of Economics and Managemen, Urmia University,, Urmia, Iran.

² Associate Professor, Department of Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

https://doi.org/10.30473/egdr.2024.70186.6807

Abstract

Today, energy is one of the economic and even political challenges within and between the countries of the world. Reducing energy intensity or increasing energy efficiency is a priority in the planning of policy makers of major countries. The important thing is that along with the phenomenon of globalization, the developments of one country spread to other countries, which has been more attention in recent studies. Hence, the present study examines the energy intensity spillover and the factors affecting it with an emphasis on financial development among 35 countries of the Asian continent during the years 2000-2021. This study has used the dynamic spatial panel approach (with two SAR and SDM approaches) for this purpose. The results of this research show that energy intensity spreads spatially between neighboring countries, so that an increase in energy intensity in one country also increases energy intensity in the neighboring country. Also, financial development has a negative effect on energy intensity, and therefore countries with higher financial development have been able to reduce their energy intensity. Also, a higher degree of economic freedom and a lower level of corruption have had a negative impact on energy intensity. On the other hand, the countries that have enjoyed more natural resource rents have had significantly higher energy intensity. Another important point is that financial development spatially has a negative impact and the abundance of natural resources has a positive spatial impact on energy intensity in neighboring countries.

Keywords

Main Subjects

Energy

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Economic Growth and Development Research

Investigating the Impact of Financial Development on Energy Intensity: A Dynamic Spatial Panel Approach

References

References

Volume 14, Issue 56
October 2024
Pages 51-35

Investigating the Impact of Financial Development on Energy Intensity: A Dynamic Spatial Panel Approach

References

References

Volume 14, Issue 56October 2024Pages 51-35

Volume 14, Issue 56
October 2024
Pages 51-35