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Inequality across countries in energy intensities: an analysis of the role of
energy transformation and final energy consumption

Juan Antonio Duro^a and Emilio Padilla^b

a Departamento de Econom^a, Universidad Rovira i Virgili. Av. de la Universitat,
1.43204 Reus, Espana. E-mail: [email protected]

^b Departamento de Econom^a Aplicada, Universidad Autonoma de Barcelona
08193 Bellaterra, Espana. E-mail: [email protected]

Abstract

This paper analyzes the role of the energy transformation index and of final
energy consumption per GDP unit in the disparities in energy intensity across
countries. In that vein, we use a Theil decomposition approach to analyze
global primary energy intensity inequality as well as inequality across different
regions of the world and inequality within these regions. The paper first
demonstrates the pre-eminence of divergence in final energy consumption per
GDP unit in explaining global primary energy intensity inequality and its
evolution during the 1971-2006 period. Secondly, it shows the lower (albeit non
negligible) impact of the transformation index in global primary energy
inequality. Thirdly, the relevance of regions as unit of analysis in studying cross-
country energy intensity inequality and their explanatory factors is highlighted.
And finally, how regions around the world differ as to the relevance of the
energy transformation index in explaining primary energy intensity inequality.

Keywords: Energy efficiency, energy intensities, energy transformation, Theil
index.

JEL code: C69, D39, Q43.

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