Human capital and energy consumption: six centuries of evidence from the United Kingdom

Sefa Awaworyi Churchill, John Inekwe, Kris Ivanovski, Russell Smyth

Research output: Contribution to journalArticleResearchpeer-review

Abstract

We examine the relationship between human capital and energy consumption in the United Kingdom employing time series data dating back to the beginning of the sixteenth century. We first employ traditional parametric methods to examine the long-run effects. We find a negative relationship between total human capital and energy consumption in the long run, with an additional year of schooling reducing energy consumption in the range 4–9%, depending on the identification method. Given that such a long time series contains non-linearities and structural shifts in the data, we investigate the non-linear properties and find a long-run relationship between human capital and energy consumption. We also relax the functional form assumptions and utilise local linear non-parametric regression. The results show a time-varying non-parametric link between human capital and energy consumption, although, consistent with the linear long-run estimates, the relationship is negative.

Original languageEnglish
Article number106465
Number of pages14
JournalEnergy Economics
Volume117
DOIs
Publication statusPublished - Jan 2023

Keywords

  • Energy consumption
  • Human capital
  • Non-linearity

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