The Energy Intensity of Economic Sectors in MINT Countries: Implications for Sustainable Development

Abstract

This paper analysed the status of energy intensity of economic sectors (agriculture, industry, commercial, residential) in MINT (Mexico, Indonesia, Nigeria, Turkey) countries and its implications for sustainable development. We utilised descriptive statistics as well as the Logarithmic Mean Divisia Index (LMDI) decomposition analysis to examine energy and efficiency trends, from 1980-2013, in MINT countries. Empirical results indicate inefficient energy use in the residential and industrial sectors of Nigeria and Indonesia. The analysis  also indicates that income/output growth (activity effect) contributed to an increase in sectoral energy consumption of MINT countries. It also revealed that while structural effects contributed to a reduction in energy consumption in virtually all the sectors in Turkey and Mexico, it contributed to an increase in energy consumption of the residential, industrial and commercial sectors of Indonesia and Nigeria in virtually all the periods. These results suggest that a policy framework that emphasizes the utilization of energy efficient technologies especially electricity infrastructural development aimed at energy service availability, accessibility and affordability will help to trigger desirable economic development and ensure rapid sustainable development of MINT economies.