Energy Intensity of Kazakhstan’s GDP: Factors for its Decrease in a Resource-export Developing Economy

Nurlan Kurmanov, Ulukbek Aliyev, Aizhan Satbayeva, Gulmira Kabdullina, Darkhan Baxultanov

Abstract


Kazakhstan continues to use several times more energy per production unit than more developed countries and regions of the world. This study is the first comprehensive review and analysis of energy intensity factors of Kazakhstan’s gross domestic product for the priod of 1990-2018. We have studied the influence of various factors on the GDP energy intensity: indicators characterizing the country's economic growth, power industry and living standards development. Calculations made have shown that the most significant influence on improving the energy efficiency of the economy is exerted by the indicators of Net Energy Imports and GDP per capita at PPP. The calculated elasticity coefficient shows that with an increase in the value of Net Energy Imports by 1%, the expected decrease in energy intensity shall be 0.85%. With an increase in GDP per capita of 1%, the expected decrease in energy intensity shall be 0.44%. However, in Kazakhstan, the influence of GDP per capita is mediated by the export of energy resources, which is confirmed by the high correlation between GDP growth, total energy production and export. We are concluding that for the developing economy of Kazakhstan exporting energy resources, the conversion of primary energy into products with high added value is more rational for economic development and energy conservation.Keywords: Energy Resources, Energy Intensity, Energy and Growth, Energy Policy, Kazakhstan

JEL Classifications: O13, Q43, Q48

DOI: https://doi.org/10.32479/ijeep.9817


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