1. Business cycles and energy intensity. Evidence from emerging economies
- Author
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Gaoke Liao, Xue Li, and Tinghui Li
- Subjects
Economic expansion ,media_common.quotation_subject ,Energy intensity ,Economics ,Business cycle ,General Earth and Planetary Sciences ,Climate change ,Monetary economics ,Foreign direct investment ,Emerging markets ,Recession ,General Environmental Science ,media_common - Abstract
Reducing energy intensity and coping with climate change are important policy issues that face all countries. This study examines the impact of business cycles (recessions and expansions) on energy intensity in sixteen emerging countries in 1990–2014. We find that during periods of economic expansion (recessions), business cycles reduce (increase) energy intensity. We also study the moderating effect of foreign direct investment (FDI) between business cycles and energy intensity and find that FDI lowers (raises) energy intensity in countries with high (low) level economic development. In addition, this study finds a nonlinear relationship between business cycles and energy intensity. Policy implications of the findings are discussed.
- Published
- 2022