Oil consumption and economic efficiency: A comparative analysis of advanced, developing and emerging economies, Ecological Economics 70(7): 1354–1362. In common with Ν. Τzeremes.
Oil consumption and economic efficiency: A comparative analysis of advanced, developing and emerging economies, Ecological Economics 70(7): 1354–1362 (SCOPUS, EconLit, ISI Listed. Impact Factor: 2,720 and 5-year 3,929). In common with Ν. Τzeremes (2011).
This paper investigates the economic efficiency–oil consumption relationship in 42 countries during the period 1986-2006. In a first stage by using DEA window analysis countries’ economic efficiencies are obtained. In a second stage an econometric analysis based on robust GMM estimators reveals an inverted ‘U’-shape relationship between oil consumption and economic efficiency. In order to capture heterogeneities among countries’ development stages the analysis has been separated into two groups (advanced economies and developing/ emerging economies). The results show that advanced economies have much higher turning points compared to emerging and developing economies. It appears that oil consumption increases countries’ economic efficiency. In addition the consumption patterns of oil products and its derivatives have change among the years and among the countries. The different turning points from the econometric analysis indicate the dependence of oil consumption in advanced economies (higher turning points) is driven mainly by household purchasing activities and their standard of living (i.e. transport; housing and water, food, etc.). Finally, it appears that oil consumption is the main driver behind the progress of industrialization and urbanization regardless country’s development stage.