OECD Energy Intensity: Measures, Trends, and Convergence

This paper focuses on several different measures of OECD countries’ energy intensity levels, plots their trends, applies a number of techniques to determine whether those intensities are converging, explores the importance of that convergence, and estimates the future steady-state or long-run distribution of energy intensity for the OECD. The paper finds that OECD energy intensity typically is declining, and a number of parametric and nonparametric methods indicate a strong degree of convergence. However, convergence is conditioned on country specific factors since differences in individual energy-GDP ratios persist. These findings suggest limits to the general decline in developed country energy intensity.