Convergence and persistence in per capita energy use among OECD countries: Revisited using confidence intervals

- The paper studies the convergence of per capita energy use in 25 OECD countries.
- Unlike the previous studies, which mainly used unit root tests, in this study, we construct subsampling confidence intervals to assess the convergence.
- We construct the 90% and 95% confidence intervals for sum of the AR(p) coefficients.
- The results show that the per capita energy use in Australia, Austria, Belgium, Denmark, Finland, Greece, Italy, Japan, Luxembourg, Netherlands, Norway, Spain, and Switzerland has a convergent pattern.

This paper investigates the convergence in per capita energy use of a group of 25 OECD countries over the period 1960-2012. Unlike the previous studies, which mainly used unit root tests, in this study, we construct subsampling confidence intervals to assess the convergence in the per capita energy use. These confidence intervals are more informative than the unit root tests, as they provide us with further information on the degree of persistence of the energy use. Our findings suggest that the per capita energy use in Australia, Austria, Belgium, Denmark, Finland, Greece, Italy, Japan, Luxembourg, Netherlands, Norway, Spain, and Switzerland has a convergent pattern. However, the per capita energy use in Greece, Luxemburg, and Spain appear to be very persistent. For the rest of the countries, i.e. 12 countries, we see a divergent pattern.