The Impact of Urbanization on Energy Intensity — An Empirical Study on OECD Countries

Abstract

With the significant increase in population and economic level, the link between urbanization and energy intensity in a nation has grown into a popular academic focus. In light of this, we explore the impact of urbanization on energy intensity by utilizing the differential GMM method. We take OECD countries as research samples and collect the panel data of 38 countries from 1990 to 2015. In addition, we discuss the moderating role played by innovation in the process of urbanization affecting energy intensity. The results are summarized as follows: first, in the current OECD countries, the effect of urbanization on energy intensity presents a significant inverted U shape, passing the robust test; second, heterogeneous impacts of urbanization on energy intensity are reflected by both the national developmental level and energy intensity; third, a higher innovation level causes a stronger inhibition effect of urbanization on energy intensity.

Keywords

• urbanization level
• energy intensity
• inverted u-shape impact