THE IMPACT OF GOVERNANCE INDICATORS ON THE FINAL AND RENEWABLE ENERGY CONSUMPTION IN OECD COUNTRIES
THE IMPACT OF GOVERNANCE INDICATORS ON THE FINAL AND RENEWABLE ENERGY CONSUMPTION IN OECD COUNTRIES

Summary/Abstract: Energy consumption increased all over the world after industrial revolution. Various factors effecting energy consumption has been explored in the literature widely. However, the role of governance indictors on energy consumption of OECD countries has never been explored in the literature. This article has explored the relationship between governance indicators -such as control of corruption, government effectiveness, political stability, absence of violence/terrorism, regulatory quality, rule of law- and energy consumption for the OECD countries. Empirical results indicated that the control of corruption and government effectiveness have insignificant impact on the total final energy consumption, but the political stability, regulatory quality, rule of law and voice and accountability have significant negative impact on the total energy consumption. This means that better governance will increase energy efficiency.

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