considered, inter-group inequality is more important than intra-group inequality
(60%-40%). This shows the relevance of the grouping we made. However,
inequality is not reduced in all the regions. In four of the nine regions considered
inequality actually increased.
The factorial decomposition allowed to identify the unequal final energy
consumption per GDP unit as the most relevant factor in cross country energy
intensity inequalities. The observed reduction in final energy intensity inequality
can be attributed to either a convergence in final energy consumption efficiency
across countries or a greater similarity in sectoral production structures. In that
respect, Duro et al. (2010) show that, for a sample of OECD countries, the
reduction in final energy intensity inequalities is fundamentally due to a
convergence in consumption efficiency from sector to sector and not to a
greater similarity in production composition, which have become more unequal
during the period of analysis. Nevertheless, this evidence cannot however be
extrapolated to the rest of the regions. In fact, the present paper shows that in
some regions there has been increasing divergence in final energy consumption
per GDP unit.
The transformation factor has been less relevant in determining cross country
energy intensity inequalities, although its role is far from being negligible. Its
contribution to inter-group inequality is even more moderate. However, it is very
relevant in explaining the existing differences within some of the regions
considered. It represents one fourth of regional inequalities in energy intensity in
some regions. Important differences still exist in the efficiency in transforming
primary energy into final one. Clearly, the differences in energy conversion
efficiency cannot be neglected. In some regions (e.g. Africa) such differences
go up while the overall trend is downward. However, through the
implementation of pertinent measures, there could still be scope to reach
greater convergence toward higher efficiency level in energy transformation.
The interaction component is quite relevant, particularly with respect to within
group energy intensity inequalities for some countries. However, in terms of
global inequality its contribution is moderate and negative. This negative
19
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