On interaction of the energy: Human capital Kuznets curve? A case for technology innovation
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On interaction of the energy: Human capital Kuznets curve? A case for technology innovation Nadia Hanif1 · Noman Arshed2 · Osama Aziz3 Received: 7 January 2019 / Accepted: 24 November 2019 © Springer Nature B.V. 2019
Abstract On the eve of depleting energy resources and global warming, there is a sincere push by OECD and other economies toward the sustainable energy consumption. This change of perception is mainly coined with the aim to change in attitude of people for the posterity. This study sets to evaluate the effect of development in human capital on the selection of renewable and non-renewable energy consumption. Further, this study put insights into the interaction effect of technology innovation to propose an early turning point for the energy—human capital Kuznets curve for OECD and non-OECD emerging countries. Panel FGLS model confirms the presence of the Kuznets curve for both OECD and nonOECD emerging countries, and there is an evidence of the supportive moderating role of technology innovation. Further practical implications are discussed. Keywords Energy sustainability · Human Development Index (HDI) · Oil prices · Exchange rate JEL Classification O3 · Q2 · Q3
1 Introduction The average global primary energy consumption growth was 0.9% in 2015 and subsequent growth of 1.2% in 2016 and 2.2% in 2017. This growth rate was evaluated with a 10-year average of 1.7% each year. On the other side, the consumption of energy in China as compared to global energy consumption was 3.1% in 2017. China persisted as the world’s * Noman Arshed [email protected] Nadia Hanif [email protected] Osama Aziz [email protected] 1
University of International Business and Econommics, Beijing, China
2
University of Management and Technology, C‑II Johar Town Lahore, Lahore, Pakistan
3
Ryerson University, Toronto, Canada
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largest growth market for energy consumption for a 17th consecutive year (British Petroleum 2017). In their study, Ruhul et al. (2017) stated that the consumption of energy in China is the replacement of USA to become a top user in 2009 and that energy consumption can also be considered as one of China’s dominant growth perspectives. U.S Energy Information Administration (2017) stated that most of the energy consumption would be held by countries other than OECD, but in those countries where the long-term and strong economic growth raises the demand for energy growth. When considering emerging economies, India and China alone are considered for more than half of the world’s total increase in energy consumption over 2015. By 2040, energy consumption in non-OECD Asia surpasses the entire OECD by 41 quadrillions BTU in the IEO2017 as predicted by U.S Energy Information Administration (2017). Global Energy Assessment in 2012 stated that while comparing energy consumption per capita, OECD countries had lower energy potency in comparison with transition and developing countries (Yeager et al. 2012). The past witnessed low energy consumption at t
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