Document Type : ORIGINAL ARTICLE

Authors

• Dhulfiqar Hameed Abed Hameed Abed ¹
• Yousef Mohammadzadeh ²
• Ali Rezazadeh ²

¹ PHD student of Financial Economics, Faculty of Economics and Management, Urmia University, Urmia, Iran

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

Abstract

Energy is one of the most important economic and even political challenges facing societies today. Reducing energy intensity or increasing energy efficiency is therefore a priority for policymakers in major countries. Importantly, with the phenomenon of globalisation, developments in one country spill over to other countries, which has received more attention in recent studies in this category. Therefore, the present study examines the energy intensity spillover and the factors influencing it, with a focus on the financial development among 35 Asian 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 study show that energy intensity is spatially dispersed among neighbouring countries. In addition, financial development has a negative effect on energy intensity, so that countries with higher financial development have been able to reduce their energy intensity. Countries with an open economy were also better able to reduce energy intensity. On the other hand, countries that enjoyed more natural resource rents had significantly higher energy intensities. Controlling corruption in countries can also have a significant impact on reducing energy intensity.

Keywords

• energy intensity
• financial development
• space overflow

Main Subjects

• Energy