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The impact of trade openness, export concentration and economic complexity on energy demand among G7 countries

This research attempts to explore the scale (trade openness), composition (export concentration) and technique effect (economic complexity) of international trade on energy use in the sample of G7 nations over the period 1970 and 2020 separately. To do that, we build up three empirical models based on the regression on population, affluence and technology approach. The analysis outcomes indicated a positive long-run link between per capita income, urbanization, trade openness, export concentration, economic complexity and energy use across the three models. The outcomes obtained from long-run estimations provide evidence that economic complexity and export concentration decreases energy consumption. Besides, empirical findings show that trade openness boosts energy use. Based on the detailed empirical research, the direction for the policy is that they should harness more strength on energy conservation by increasing the composition and technical effects of international trade. They should also focus on improving the countries’ economic freedom (trade openness) while maintaining energy consumption at a lower rate.
- Bournemouth University United Kingdom
- University of Castile-La Mancha Spain
citations This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).11 popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.Top 10% influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).Average impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.Top 10%
