Repositorio Académico

This paper analyses the relationship between economic growth and residential energy consumption in 12 transition economies during the 1995–2013 period, by testing the EKC hypothesis. Urbanisation, population density, transition level and structural change have been included in the estimate process as control variables. The estimate results are compatible with the EKC hypothesis. However, the turning point has not been reached, although Russia is close to it. The results also show that, for countries with low income levels, the economic growth has been reducing the residential energy consumption, which may be related to efficiency gains. Nevertheless, for countries with higher income values, the economic growth has increased the residential energy consumption. Therefore, it may be adequate to establish energy efficiency measures in households and buildings, and promote the use of renewable energy, in order to reduce environmental problems. The results also show that the elasticity values are not constant over time and countries. These differences make it recommendable to adapt the energy policy to each country. The results also show that the urbanisation, higher transition level towards a market economy, and the structural change of the economy towards to one that is more tertiary based, have positive effects in reducing residential energy use. © 2018, © 2018 Informa UK Limited, trading as Taylor & Francis Group.