DYNAMICS AND DETERMINANTS OF ENERGY INTENSITY: EVIDENCE FROM PAKISTAN
DYNAMICS AND DETERMINANTS OF ENERGY INTENSITY: EVIDENCE FROM PAKISTAN

Summary/Abstract: The study investigates the effect of income, institutional quality, urbanization and industrialization on energy intensity in Pakistan using vector error correction model. It finds poor institutional quality and industrialization behind high energy intensity in Pakistan while income per capita and associated urbanization playing a significant role in reducing energy intensity. Good governance practices and better quality of institutions can play an effective role in increasing the efficiency in the use of energy thus reducing overall energy intensity. Moreover, investment in apposite technical and general education, in addition to enhancing research and development activities can help make Pakistan an innovation based economy and increase its productivity and eventually become an energy efficient economy.

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