Stochastic convergence of disaggregated energy consumption per capita and its catch-up rate: An independent analysis of MENA net oil-exporting and importing countries

Investigating the stochastic convergence of energy consumption per capita and its catch-up rate is important for policies in energy demand and supply as well as environmental management, hence, the coming up of this paper with reference to the MENA oil-exporting and importing nations for the period of 1990-2016 using advances in unit root tests including the panel KPSS test with breaks; two-step LM test with breaks and Residual Augmented Least Squares-Lagrange multiplier (RALS-LM) test with breaks. The findings from the panel test revealed stochastic convergence in total, nonrenewable, and renewable energy consumption for all the panels in both groups except the catch-up rate panel of total energy consumption of the net oil-importing nations while the univariate tests in the MENA net oil-exporting nations uncovered stochastic convergence in total (54% of the sample), nonrenewable (54% of the sample), and renewable (70% of the sample) whereas, in the MENA net oil-importing nations, total (64% of the sample), non-renewable (55% of the sample), and renewable (73% of the sample). However, in the catch-up rate of the MENA net oil-importing nations, total (45% of the sample), nonrenewable (73% of the sample), and renewable (73% of the sample). Policy implications were made.