We examine convergence in per capita energy consumption across nine sectors and seven states and territories in Australia over the period 1990–2016 using the Phillips-Sul club convergence approach. We find evidence of multiple convergence clubs for aggregate energy consumption per capita and for energy consumption per capita in eight of the nine sectors with full club convergence in the case of electricity. The presence of multiple equilibria for most sectors reflect that states with similar features in terms of climate, economic activities and population size, among others, tend to exhibit similar energy consumption patterns. Our results highlight the need to tailor policies designed to reduce energy consumption in specific sectors to the consumption convergence paths unique to particular clusters of states.
- Club convergence/clustering
- Energy consumption