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Changing Patterns of Energy Use and Its Linkage With Some Macroeconomic Variables in India and China

Over the last decade there has been a gradual change in the global energy landscape, with fast-growing emerging markets overtaking the traditional centers in terms of energy demand. International Energy Outlook 2017 forecasts that energy consumption in non-OECD countries would increase by 41% between 2015 and 2040 in contrast to a 9% increase in OECD countries. The chapter focuses on two major areas: (1) examining the changing pattern of the composition of energy use in the two selected countries of Asia (India and China) and (2) examining the short-run and long-run relationship among energy use, GDP per capita, energy intensity, use of electricity power, extent of urbanization. Using ARDL bound test for the period 1990 to 2014 for the World Development Indicator data 2017-18, it reveals that the powerhouses of global energy demand growth are led by the developing economies of Asia (i.e., China, India, Indonesia, Morocco, Brazil, Singapore, and Thailand). In the case of India, a long-run association has been found between energy use and GDP per capita, energy intensity, use of electricity power, and extent of urbanization, but no instances are for China.