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Abstract

Improving energy efficiency is key to moving toward sustainable development. It contributes to the reduction of energy consumption and carbon emissions, as well as to climate change mitigation. Indicators of energy efficiency play an important role in this field because their improvement is targeted by policy makers. Indicators based on the ratio between energy consumption and gross domestic product (GDP) are currently used by multiple key organizations, including Eurostat and the World Bank, as the main energy efficiency indicators. This study examines the most widely used indicators and identifies their deficiencies. Over the last decades, these indicators tend to show a continuous strong improvement, signifying positive progress toward energy efficiency, even in cases when the physical consumption of energy has increased significantly. This phenomenon is based on GDP adjustment. The energy intensity of economies, used currently to measure energy efficiency, masks problems and has led to the green labeling of wealthier economies. An analysis of energy efficiencies reported for multiple countries and the structure of their energy spending shows that the reported values are counterproductive for comparing economies in the context of environmental protection. The indicators sanction economies with low energy consumption and low or moderate GDP. The economies belonging to the group of the largest energy spenders per capita are labeled highly efficient because of GDP adjustment. Decision makers are therefore prompted to focus on GDP growth even at the cost of a major increase in energy consumption. An additional problem in the indicators is that they do not properly model international trade. The responsibility for energy spending is shifted toward the producers of energy-intensive goods and services. Energy intensity is a useful indicator to measure the resistance of an economy to the volatilities of energy prices. However, the challenges in the fields of environmental pollution and climate change are related to physical processes and energy consumption rather than to changes in the GDP or the monetary valuation of products and services. Indicators measuring energy efficiency as GDP per unit of energy use are inadequate and misleading as principal tools to measure energy efficiency.

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Authors and Affiliations

Yavor Kolarov
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Abstract

The author analyzes the relationship between the size of GDP generated in the region and its metropolitan capital city, and the level of budget revenues of local government units – including the metropolis. On the example of Małopolska and Cracow, it observes tendencies of the growing level of income of local governments in relation to GDP, but fi rst of all it points out that in the metropolitan city the ratio is much lower than in the whole region. This defi ciency is called the „metropolitan income gap” and looks for the reasons for its occurrence. He points to the dynamic suburbanization, which causes that more and more groups of people contributing to the production of GDP in a metropolitan city pay property taxes, personal income and a large part of VAT in the suburban area. What is more, the areas of this zone use various forms of development support – for example, development of rural areas. The author considers the phenomenon of the «metropolitan income gap» to be a negative phenomenon, limiting the ability to compete on a global scale and points to several possible ways leading to its reduction. The author considers the phenomenon of the «metropolitan income gap» to be a negative phenomenon, limiting the ability to compete on a global scale and points to several possible ways leading to its.

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Authors and Affiliations

Janusz Sepioł
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Abstract

The world economy is constantly faced with crises that cause a significant negative impact. Each crisis poses new challenges to the economy and, on the one hand, inhibits economic growth, and on the other hand, can become a powerful stimulus for the development and rethinking of fundamental approaches to its construction. Conducting an analysis and establishing relationships between the economic situation and the state of the energy sector make it possible not only to predict the future but also to develop specific steps to prevent crises or reduce their negative impact. At the same time, establishing and evaluating the relationship between key economic and energy indicators, the main one of which is definitely the energy intensity of GDP, will provide an opportunity to understand how improving energy security will affect the economic situation in the country. The generalization of Ukraine’s experience in rebuilding and recovering the economy after the biggest crisis creates a basis for further research in the field of energy management, crisis management, economics, and the construction of investment policy. The reconstruction of Ukraine after the war has the potential to become the most significant stimulus for development and economic growth. During the crisis, it is very important to pay attention to the country’s energy security. In particular, it is necessary to ensure the diversification of energy resources, taking into account their rising cost. Energy markets are currently experiencing extreme volatility caused by geopolitical tensions, which requires additional attention in the development and implementation of strategic guidelines for sustainable economic recovery in Ukraine.
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Authors and Affiliations

Anastasiia Hryhorenko
1
ORCID: ORCID
Hanna Kotina
1
ORCID: ORCID
Maryna Stepura
1
ORCID: ORCID
Hanna Zavystovska
2
ORCID: ORCID

  1. Department of Finance named after Victor Fedosov, Kyiv National Economic University named after Vadym Hetman, Ukraine
  2. Faculty of Finance of the Department of Finance named after Victor Fedosov, Kyiv National Economic University named after Vadym Hetman, Ukraine
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Abstract

Since the implementation of the compulsory sorting of domestic waste policy in China, the participation rate of residents is low, which leads to the unsatisfactory result of terminal reduction of domestic waste. Therefore, the problem of domestic waste reduction still needs to rely on source reduction. Based on the panel data of 29 provincial capitals in China from 2009 to 2018, this study conducts a comprehensive threshold effect test on per capita GDP and other influencing factors of domestic waste production, conducts panel threshold regression for the factors with threshold value, and explores the nonlinear relationship between per capita GDP and domestic waste production under the influence of different threshold variables. The results show that when the urban population density is less than 272 people/km2, the increase of 1% of per capita GDP will lead to a decrease of 0.251% in the domestic waste production, otherwise, it will lead to an increase of 0.249%; when the per capita consumption expenditure is less than the threshold value of 10,260 yuan/year, the influence coefficient of per capita GDP is 0.155, which increases to 0.207 above the threshold. When the share of tertiary industry is taken as the threshold variable, the two threshold values are 61% and 71% respectively. Through the analysis of control variables, it has been found that population size and amount of courier per capita have significant positive effects on domestic waste production, while gas permeability and the number of non-governmental organizations have significant negative effects
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Authors and Affiliations

Li Yang
1
ORCID: ORCID
Hong-Yan Wang
1
Lan Yi
2
Xiang-Zhen Shi
1
Wei Deng
1

  1. International Business School, Shaanxi Normal University, China
  2. Jinhe Center for Economic Research, Xi’an Jiaotong University, China
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Abstract

Many studies on middle income trap draw attention to the product trapt hat can be expressed as the fact that countries are stuck in the production and export of unsophisticated products. In this sense, it is stated that the role of a country in the production and export of sophisticated goods is one of the determinant factors to increase the level of income. In the literature, the concept of economic complexity, which is expressed as gaining competitiveness of complex products in terms of production and export, is noteworthy in recentyears. In this framework, relationship between the per capita GDP and the economic complexity is examined with regression analysis in this study for selected countries with high-level of income. In the analysis, in which random coefficient panel regression model is applied, a significant relationship was found between the two variables for Austria, Finland, Hong Kong, Japan, Norway,Singapore and Sweden.

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Authors and Affiliations

Semanur Soyyiğit
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Abstract

This paper investigates the relationship between energy use and economic development in five South-Asian countries using national-level panel data from 1990 to 2014. Although many studies have already addressed the nexus between energy consumption and economic growth, there is a mixed finding. According to many researchers, South Asian countries have expanded energy consumption since the 1990s. Therefore, energy consumption as a variable for a specific period is considered for the countries of Bangladesh, India, Nepal, Pakistan and Sri Lanka. Furthermore, foreign direct investment (FDI) and international trade (IT) are also considered to be related variables in this study. Pooled ordinary least squares, random effects, and fixed effects estimation techniques are used to provide a reliable estimation, offsetting the country fixed effects. The fixed effect model is the most effective model that reveals the association between electricity usage and growth factors, as per the specification test and Hausman test. A statistically significant correlation was found between international trade, FDI, economic growth, and power usage. FDI has the highest impact on the rising power demand, followed by global commerce and per capita GDP (gross domestic product). More specifically, the study findings reveal that increased power consumption causes more investment, which results in increased economic growth in South Asian countries. The findings of the study further show that FDI significantly impacted upon power consumption and the area of SAARC’s energy demand, resulting in the entry of new technology and an increase in both economic growth and energy consumption. Future policies may focus on investment in the energy sector to promote economic development.
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Authors and Affiliations

Sabrina Akter Nishat
1
ORCID: ORCID
Zobayer Ahmed
1 2
ORCID: ORCID
Omar Faruque
3
ORCID: ORCID
Kamrul Hasan
1
ORCID: ORCID
Arafat Hossain
1
ORCID: ORCID

  1. Department of Economics & Banking, International Islamic University Chittagong, Bangladesh
  2. Department of Economics, Selcuk University, Turkey
  3. Department of Economics, Stamford University Bangladesh, Bangladesh
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Abstract

In recent years, the Australian government has changed course with regard to the gradual replacement of the country’s energy supply by traditional energy resources to alternative renewable energy sources to preserve the environment. The research relevance is predefined by the need to introduce the latest technology and to find investors for the further development of the state energy sector. In this regard, the research to reveal the current state of the energy sector in Australia, the study of existing projects, their productivity, and their impact on the environment. The main methods of research are the method of analysis of existing publications describing the current state of the energy sector as well as the method of comparing the country’s energy performance before and after the implementation of relevant reforms to better illustrate the effectiveness of existing projects. As a result, it was determined that the Australian government pursues a policy of carbon neutrality in the energy industry to reduce the harm caused to nature by harmful emissions into the atmosphere. The state has a focus on reducing the cost of electricity. It is also determined that Australia has a positive attitude toward foreign investment and is open to proposals for new technologies that improve the efficiency and security of the energy supply. The research mentions Australia’s main trading partners, their joint projects, and enterprises. The main directions of alternative energy currently used, their advantages, and their disadvantages are identified. The research result may be of practical value for investors in the field of renewable energy sources in order to better understand the energy market in Australia and possible prospects, as well as for all interested parties.
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Authors and Affiliations

Vilayat Ismayilov
1
ORCID: ORCID
Sahib Mammadov
2
ORCID: ORCID
Narmina Abbasova
3
ORCID: ORCID
Vusala Babayeva
4
ORCID: ORCID
Sabina Sadigova
3
ORCID: ORCID

  1. Azerbaijan Academy of Labor and Social Relations, Azerbaijan
  2. Azerbaijan State University of Economics, Azerbaijan
  3. Azerbaijan State Oil and Industry University, Azerbaijan
  4. Agricultural Economics Research Center, Azerbaijan
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Abstract

The role of energy as a key factor in enhancing sustainable development, energy security, and economic competitiveness is a reason that has made energy efficiency trends tracking essential and is why policymakers and energy planners have focused on energy intensity and its following issues. Also, the inadequate operation of the traditional energy intensity index and the overestimation of its results turned this index into a weak one. Hence, it is necessary to employ a new index that can be decomposed and is capable of considering both monetary and physical activity indicators to offer a more accurate view of the energy intensity variation. This paper develops a Composite Energy Intensity Index by combining monetary and physical activity indicators by applying the multiplicative Logarithmic Mean Divisia Index (LMDI) in 2001–2011 to decompose the factors affecting energy intensity change and seeks to fill the gap between the EGR and CEI indices. The results of the survey demonstrate more economy-wide energy consumption reduction while using the composite energy intensity index as compared to the traditional energy intensity index; also, the results show the relatively important role of the overall structure effect. From Sectoral perspective results, both energy to GDP index (EGR) and composite energy intensity index (CEI) have shown passenger transport as the most energy-consuming sector. The passenger transport sector reveals an urgent need for implementing appropriate policies to reduce the high energy consumption of the sector.
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Authors and Affiliations

Mahta Ghafarian Ghadim
1
ORCID: ORCID
Ali Faridzad
1
ORCID: ORCID

  1. Department of Energy, Agriculture and Environmental Economics, Faculty of Economics, Allameh Tabataba’i University, Iran

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