Energy consumption flow and regional economic development: evidence from 25 economies

Purpose: This paper aims to figure out the relationship between energy consumption flow from a new perspective of embodied energy inventory index (EEII) and regional economic growth. Design/methodology/approach: The input-output approach has been applied to calculate embodied energy inventory (EEI) and EEII using the data of 25 economies. Meanwhile, cluster analysis and panel data modeling were applied to carry out detailed research. Findings: The results of cluster analysis show that there is a roughly negative relationship between EEII and gross domestic product (GDP) per capita, although there are some exceptions, such as Russia and Taiwan (Province of China). Panel data model results provide further evidence that there is a negative relationship between EEII and GDP per capita. Population is an important productive factor in the regional economic development. The study showed a positive relationship between EEII and population. Therefore, energy consumption flow is closely related to regional economic development. Originality/value: The value of this paper is to use EEI and EEII to comprehensively clarify the energy consumption flow. The advantage of EEII is that it can reflect the energy embodied in fixed assets and infrastructure.