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Indexed by:Journal Papers

Date of Publication:2019-10-01

Journal:ENERGY POLICY

Included Journals:EI、SCIE、SSCI

Volume:133

ISSN No.:0301-4215

Key Words:Industrialization; Trade openness; Economic growth; Energy intensity; Path model; Bangladesh

Abstract:Nowadays, multifaceted interdependence between macroeconomic variables results in an extended list of factors that have diverse impacts on energy intensity. Thus, sustaining energy intensity at a desired level demands advanced studies to investigate the multifarious influences of its factors and ensure proactive measures to deal with them. This paper aims to set up a path model to analyze the direct and indirect impacts of industrialization and trade openness on energy intensity in Bangladesh. The results corroborate that industrialization has a direct positive influence on energy intensity where trade openness shows a direct negative effect on it; and both industrialization and trade openness have negative indirect impact on energy intensity through technological innovation and economic growth respectively. In case of individual total impacts, only industrialization affects energy intensity positively, where trade openness, technological innovation and economic growth negatively do. Based on the empirical results, some policy implications regarding energy intensity and effects of its factors on it are also presented.