Amid the global transition toward sustainable energy systems, this study examines the determinants of energy intensity across 27 OECD countries from 1990 to 2022, with particular emphasis on technological innovation and demographic dynamics, providing novel insights for energy policy.
A dynamic panel framework employing common correlated effects (DCCE) estimators is utilized to account for cross-sectional dependence and slope heterogeneity inherent in interdependent country-level data. Complementary quantile regressions capture heterogeneous effects across the conditional distribution of energy intensity.
Empirical results indicate that technological innovation significantly reduces energy intensity through efficiency gains and cleaner technology adoption. Economic openness and GDP per capita are associated with lower energy intensity, whereas higher fertility rates are linked to increased energy intensity, reflecting greater demand for energy-intensive services. Quantile estimates reveal that innovation and credit access exert stronger effects at lower and median quantiles, while fertility’s impact diminishes at higher quantiles.
The findings underscore the need for integrated policies promoting innovation, financial accessibility and demographic considerations to enhance sustainable energy efficiency.
The study advances the literature by combining dynamic panel and quantile-specific approaches to elucidate the heterogeneous impacts of technological, economic and demographic factors on energy intensity – nuances often overlooked in prior empirical research.
