Analysis on the Determinants of Energy Intensity in South Asia

Abstract

Inefficiency use of energy will create many problems including environment degradation. When energy is used inefficiently this will lead to increase the Energy Intensity and degrade the environment as well. The aim of this paper is to investigate the determinants of Energy Intensity in the region of South Asia. For this purpose, the study used panel data, covering thirty-one yearly periods from 1990 to 2021. The current study applied Hausman Test, Redundant Test. The results of these tests state that Fixed Effect Method is more effective for the analysis. The finding showed that GDP, Industry and Non-Renewable Energy are the determinants of energy intensity and Greenhouse Gas Emission. While, GDP², Agriculture, Renewable Energy, Services Sector reduce energy intensity and Greenhouse Gas Emission in South Asia.