Former Soviet Union countries and the European Union: Overcoming the Energy Efficiency Gap

Abstract

In this paper, we analyzed the FSU countries for energy intensity during 1995–2010. We figured out 3 clubs in GDP per capita. Two countries (Turkmenistan and Kyrgyzstan) have demonstrated divergence and were excluded from further analysis. We found evidence of β-convergence in income for every club pooled with EU13, wherein the convergence rate is higher for countries with a low level of development. We investigated the rate of convergence in energy intensity of GDP and identified factors that affect it. The convergence based on its own tendency to the average level EU13 energy intensity exists in almost all FSU countries. The convergence based on per capita GDP tendency to the average level of EU13 exists in almost all countries. In several countries one or both of these factors do not affect the speed of convergence. We provide possible explanations for this behaviour. Empirical results to a certain extent support the hypothesis that energy intensity of GDP in resource-rich countries declines more slowly than in the entire sample. Refs 23. Figs 3. Tables 3.

Keywords:

Club convergence, convergence, energy intensity, transitional economies, former USSR