Abstract

This paper proposes the use of Theil's second measure to analyze international energy intensity differences. This index allows differences to be broken down within and between groups of countries in a consistent manner. An analysis of OECD countries for the period 1971–1999 shows some basic points: first, the fall in energy intensities differences is attributable both to within-group and between-group inequality components; second, between-group inequalities are currently the main contributor to the whole inequality value; finally, a detailed exploration on within-group inequalities reveals the significant explanatory role played by EU-countries.

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