Conditional convergence in Australia's energy consumption at the sector level

- Examine energy consumption per capita in seven sectors in Australia
- Use LM and RALS-LM unit root tests that allow for up to two breaks
- Energy consumption per capita converges for six sectors.
- Energy consumption per capita does not converge for transport.
- Most structural breaks coincide with major global events.

We examine the convergence of energy consumption per capita at the sector level in Australia over the period 1973-74 to 2013-14. To do so, we employ recently developed LM and RALS-LM unit root tests that accommodate up to two endogenously determined structural breaks. We find support for energy consumption per capita convergence for six of seven sectors in Australia.