Persistence analysis of energy intensity of well-being in OECD countries

Energy intensity of well-being measures the volume of energy consumption per unit of human well-being. Numerous features of the indicator have not been assessed in the extant literature including its persistence. This study focusses on the persistence of energy intensity of well-being using the data of 31 OECD countries for 1965-2022 period. Three indicators of well-being, including life expectancy, under-five survival rates and infant survival rates have been evaluated in the analysis. Using a fractional integration method, the results indicate that most of the series are highly persistent, with order of integration about 1. Mean reversion and thus transitory shocks are found in only few countries that are mostly Scandinavian countries. An implication of the results is that there is hysteresis in energy intensity of well-being in majority of the OECD countries. Hence, long-term measures interventions as against short-term blueprints are required to essentially further decrease energy intensity of well-being in the OECD countries. The results also suggest that it is not feasible to correctly project the future values of energy intensity of well-being by just counting on their historical values. There is the need to incorporate the importance of other potential factors in projecting future values of energy intensity of well-being.