Energy Intensity and Environmental Governance: A MM-QR and BS-QR Analysis

Abstract

This study examines the impact of environmental governance on energy intensity in OECD countries. Specifically, it investigates how governance mechanisms influence the efficiency of energy use and contribute to sustainable development outcomes. The analysis is based on panel data from OECD countries over an extended period.Method of Moments Quantile Regression and Bootstrap Quantile Regression are employed to capture heterogeneous effects across different quantiles. Energy intensity is the dependent variable, and environmental governance indicators and control variables areincluded in the model. The results reveal that stronger environmental governance significantly reduces energy intensity by indicating improved energy efficiency. The impact varies across quantiles, suggesting that countries with higher initial energy intensity benefit more from governance improvements. Environmental expenditures and policy interventions promote the adoption of energy-efficient technologies and cleaner energy sources, which lower energy consumption. The study provides important policy implications for OECD countries. Strengthening environmental governance through increased investment, effective regulation, and enforcement mechanisms can substantially enhance energy efficiency and reduce environmental degradation.