the impact of possible climate catastrophes on global warming policy abstract recent studies on global warming have introduced the inherent uncertainties associated with the costs and benefits of climate policies and have often shown that abatement policies are likely to be less aggressive or postponed in comparison to those resulting from traditional cost benefit analyses cba yet those studies have failed to include the possibility of sudden climate catastrophes the aim of this paper is to account simultaneously for possible continuous and discrete damages resulting from global warming and to analyse their implications on the optimal path of abatement policies our approach is related to the new literature on investment under uncertainty and relies on some recent developments of the real option in which we incorporated negative jumps climate catastrophes in the stochastic process corresponding to the net benefits associated with the abatement policies the impacts of continuous and discrete climatic risks can therefore be considered separately our numerical applications lead to two main conclusions i gradual continuous uncertainty in the global warming process is likely to delay the adoption of abatement policies as found in previous studies with respect to the standard cba however ii the possibility of climate catastrophes accelerates the implementation of these policies as their net discounted benefits increase significantly

can falling supply explain the rising return to college for younger men a cohort based analysis although the college high school wage gap for younger u s men has doubled over the past 30 years the gap for older men has remained nearly constant in the united kingdom and canada the college high school wage gap also increased for younger relative to older men using a model with imperfect substitution between similarly educated workers in different age groups we argue that these shifts reflect changes in the relative supply of highly educated workers across age groups the driving force behind these changes is the slowdown in the rate of growth of educational attainment that began with cohorts born in the early 1950s in all three countries

global wind power development economics and policies abstract existing literature indicates that theoretically the earth s wind energy supply potential significantly exceeds global energy demand yet only 2 3 of global electricity demand is currently derived from wind power despite 27 annual growth in wind generating capacity over the last 17 years more than 95 of total current wind power capacity is installed in the developed countries plus china and india our analysis shows that the economic competitiveness of wind power varies at wider range across countries or locations a climate change damage cost of us 20 tco 2 imposed to fossil fuels would make onshore wind competitive to all fossil fuels for power generation however the same would not happen to offshore wind with few exceptions even if the damage cost is increased to us 100 tco 2 to overcome a large number of technical financial institutional market and other barriers to wind power many countries have employed various policy instruments including capital subsidies tax incentives tradable energy certificates feed in tariffs grid access guarantees and mandatory standards besides climate change mitigation policies such as the clean development mechanism have played a pivotal role in promoting wind power despite these policies intermittency the main technical constraint could remain as the major challenge to the future growth of wind power

the effect of immigration along the distribution of wages this paper analyses the effect immigration has on wages of native workers unlike most previous work we estimate wage effects along the distribution of wages we derive a flexible empirical strategy that does not rely on pre allocating immigrants to particular skill groups in our empirical analysis we demonstrate that immigrants downgrade considerably upon arrival as for the effects on native wages we find that immigration depresses wages below the 20th percentile of the wage distribution but leads to slight wage increases in the upper part of the wage distribution the overall wage effect of immigration is slightly positive the positive wage effects we find are although modest too large to be explained by an immigration surplus we suggest alternative explanations based on the idea that immigrants are paid less than the value of what they contribute to production generating therefore a surplus and we assess the magnitude of these effects

the economic impact of syrian refugees on host countries quasi experimental evidence from turkey abstract the syrian conflict generated forced immigration from northern syria to southeastern turkey arrival of refugees resembles a natural experiment which offers good opportunities to study the economic impact of immigration i study three main outcomes labor markets consumer prices and housing rents i document moderate employment losses among native informal workers which suggests that they are partly substituted by refugees prices of the items produced in informal labor intensive sectors declined due to labor cost advantages generated by refugee inflows finally refugee inflows increased the rents of higher quality housing units while there is no effect on lower quality units

downward nominal and real wage rigidity survey evidence from european firms downward nominal and real wage rigidity it has been well established that the wages of individual workers react little especially downwards to shocks that hit their employer this paper presents new evidence from a unique survey of firms across europe on the prevalence of downward wage rigidity in both real and nominal terms we analyse which firm level and institutional factors are associated with wage rigidity our results indicate that it is related to workforce composition at the establishment level in a manner that is consistent with related theoretical models e g efficiency wage theory insider outsider theory we also find that wage rigidity depends on the labour market institutional environment collective bargaining coverage is positively related with downward real wage rigidity measured on the basis of wage indexation downward nominal wage rigidity is positively associated with the extent of permanent contracts and this effect is stronger in countries with stricter employment protection regulations

the labor market impact of immigration a quasi experiment exploiting immigrant location rules in germany with the fall of the berlin wall ethnic germans living in eastern europe and the former soviet union were given the opportunity to migrate to germany within 15 years 2 8 million individuals had done so upon arrival these immigrants were exogenously allocated to different regions to ensure an even distribution across the country their inflow can therefore be seen as a quasi experiment of immigration i analyze the effect of these inflows on skill specific employment rates and wages the results indicate a displacement effect of 3 1 unemployed workers for every 10 immigrants that find a job but no effect on relative wages

changing sunshine analyzing the dynamics of solar electricity policies in the global context abstract although solar costs have been dropping in recent years solar power is still more expensive than conventional and other renewable energy options and in most applications solar power still needs continuing government policy support however the need to achieve multiple objectives and ensure sufficient political support for solar power makes it difficult for policy makers to design an optimal solar power policy the dynamic and uncertain nature of the solar industry combined with the constraints imposed by broader economic political and social conditions further complicates the task of policy making in this paper we present a framework to critically analyze the objectives behind different country policies how factors such as macro economic conditions and development paradigms affect the policy outcomes and finally how these outcomes affect the overall cost reduction of solar energy we find that while the extent of cost reduction through creation of large demand remains to be seen it is essential for governments to provide adequate support for leapfrog rd d and exploit real comparative advantages across countries for effective solar cost reduction policy makers need to optimally design their policies by balancing national objectives and paying capacity with the global objective of solar power cost reduction in order to realize its full potential

energy and climate policy in china s twelfth five year plan a paradigm shift the twelfth five year plan fyp endorsed by the people s national congress in march 2011 plays a crucial role in shaping china s development trajectory over the next decades and especially for the fulfillment of the 40 45 carbon intensity reduction target by 2020 the plan will condition both the medium and long term perspectives of economic restructuring rebalance between the inclusive economic growth and environmental objectives which are compounded by multiple constraints faced by china such as aging population natural resources depletion energy supply security and environmental deterioration this article investigates the major energy and climate targets and actions specified in the 12th fyp to gain insights into the nature and magnitude of challenges and difficulties with regard to the medium and long run economic and environmental policies it points out that china should articulate sectoral policies with the global climate mitigation targets to avoid long term carbon lock in based on an in depth analysis of the objectives in the plan it is argued that the implementation should include mainstreaming developments of appropriate instruments to support cost effective energy efficiency improvements and carbon intensity reduction in the next five years

how to measure labour market effects of immigration a review abstract this paper surveys available empirical evidence on labour market effects of immigration many different approaches have been used already to try to find out whether immigration hurts the labour market opportunities of natives no doubt new approaches will follow in the future as globalization will keep the migration issue on the agenda this literature review discusses the different approaches concentrating on both the methodology and the results at the end it tries to summarize available evidence

cross country variation in the impact of international migration canada mexico and the united states using data drawn from the canadian mexican and u s censuses we find a numerically comparable and statistically significant inverse relation between immigrant induced shifts in labor supply and wages in each of the three countries a 10 labor supply shift is associated with a 3 4 opposite signed change in wages despite the similarity in the wage response theimpactofmigrationonthewagestructuredifferssignificantlyacrosscountries international migration narrowed wage inequality in canada increased it in the united states and reduced the relative wage of workers at the bottom of the skill distribution in mexico jel j31 j61

alternative policy impacts on us ghg emissions and energy security a hybrid modeling approach abstract this study addresses the possible impacts of energy and climate policies namely corporate average fleet efficiency cafe standard renewable fuel standard rfs and clean energy standard ces and an economy wide equivalent carbon tax on ghg emissions in the us to the year 2045 bottom up and top down modeling approaches find widespread use in energy economic modeling and policy analysis in which they differ mainly with respect to the emphasis placed on technology of the energy system and or the comprehensiveness of endogenous market adjustments for this study we use a hybrid energy modeling approach markal macro that combines the characteristics of two divergent approaches in order to investigate and quantify the cost of climate policies for the us and an equivalent carbon tax the approach incorporates macro economic feedbacks through a single sector neoclassical growth model while maintaining sectoral and technological detail of the bottom up optimization framework with endogenous aggregated energy demand our analysis is done for two important objectives of the us energy policy ghg reduction and increased energy security our results suggest that the emission tax achieves results quite similar to the ces policy but very different results in the transportation sector the cafe standard and rfs are more expensive than a carbon tax for emission reductions however the cafe standard and rfs are much more efficient at achieving crude oil import reductions the gdp losses are 2 0 and 1 2 relative to the base case for the policy case and carbon tax that difference may be perceived as being small given the increased energy security gained from the cafe and rfs policy measures and the uncertainty inherent in this type of analysis

the effect of mass influx on labor markets portuguese 1974 evidence revisited abstract this paper provides a reappraisal of the evidence from the influx that has been unique in the recent european history the flood of half a million returnees from mozambique and angola to portugal in the mid 1970s the objective of this paper is to study the impacts of a large supply shock on aggregate labor productivity wages and unemployment in contrast to the previous evidence the synthetic control analyses find that the influx had a significant adverse effect on labor market outcomes the results suggest that the portuguese labor market responded precisely the same way as the standard textbook model predicts an increase in the number of workers lowered average labor productivity and wages

regional decentralization and fiscal incentives federalism chinese style abstract aligning the interests of local governments with market development is an important issue for developing and transition economies using a panel data set from china we investigate the relationship between provincial government s fiscal incentives and provincial market development we report three empirical findings first we find that during the period of fiscal contracting system the discrepancy between ex ante contracts and ex post implementation was relatively small suggesting that the fiscal contracts were credible second we find a much higher correlation about four times between the provincial government s budgetary revenue and its expenditure during 1980s and 1990s as compared to 1970s demonstrating that provincial governments faced much stronger ex post fiscal incentives after reform third we find that stronger ex ante fiscal incentives measured by the contractual marginal retention rate of the provincial government in its budgetary revenue are associated with faster development of the non state sector as well as more reforms in the state sector in the provincial economy this holds even when we control for the conventional measure of fiscal decentralization finally we compare federalism chinese style to federalism russian style

an introduction to the economics of immigration in oecd countries the share of the foreign born in oecd countries is increasing and this article summarizes economics research on the effects of immigration in those nations four broad topics are addressed labor market issues fiscal questions the political economy of immigration and productivity international trade extreme concerns about deleterious labour market and fiscal impacts following from new immigrants are not found to be warranted however it is also clear that government policies and practices regarding the selection and integration of new migrants affect labour market fiscal and social cultural outcomes policies that are well informed well crafted and well executed beneficially improve population welfare

the effect of immigration on productivity evidence from us states abstract in this paper we analyze the long run impact of immigration on employment productivity and its skill bias we use the existence of immigrant communities across u s states before 1960 and the distance from the mexican border as instruments for immigration flows we find no evidence that immigrants crowded out employment at the same time we find that immigration had a strong positive association with total factor productivity and a negative association with the high skill bias of production technologies the results are consistent with the idea that immigrants promoted efficient task specialization thus increasing tfp and also promoted the adoption of unskilled efficient technologies

immigrants minorities and labor market competition this paper investigates the extent of labor market competition among immigrants minorities and the native population an analysis of 1980 u s census data reveals that immigrants tend to be substitutes for some labor market groups and complements for others the effects of shifts in immigrant supply on the earnings of native born men are however very small on the other hand increases in the supply of immigrants do have a sizable impact on the earnings of immigrants themselves an increase of 10 percent in the supply of immigrants for example reduces the immigrant wage by about 10 percent

the impact of immigration on the structure of wages theory and evidence from britain immigration to the uk particularly among more educated workers has risen appreciably over the past 30 years and as such has raised labor supply however studies of the impact of immigration have failed to find any significant effect on the wages of native born workers in the uk this is potentially puzzling since there is evidence that changes in the supply of educated natives have had significant effects on their wages using a pooled time series of british cross sectional micro data on male wages and employment from the mid 1970s to the mid 2000s this paper offers one possible resolution to this puzzle namely that in the uk natives and foreign born workers are imperfect substitutes we show that immigration has primarily reduced the wages of immigrants and in particular of university educated immigrants with little discernable effect on the wages of the native born

china as a developmental state the paper examines the notion of a developmental state and shows that china possesses the relevant characteristics it explains the political economy which generated such a state in china it analyses the institutions and methods that were introduced to create a developmental state in particular the incentive structures that the leadership used to solve the principal agent problem implicit in having centralised political control but decentralised economic management these include personnel policies fiscal decentralisation and patronage relationships that leads to a review of its successes limitations and adverse consequences and to the question can china s developmental state be sustained among these issues are the great socioeconomic changes that rapid economic growth has entailed which have strengthened the case for broadening government policy objectives beyond the previous narrow focus on growth conclusions are drawn for both china and other developing countries

the impact of immigration why do studies reach such different results we classify the empirical literature on the wage impact of immigration into three groups where studies in the first two groups estimate different relative effects and studies in the third group estimate the total effect of immigration on wages we interpret the estimates obtained from the different approaches through the lens of the canonical model to demonstrate that they are not comparable we then relax two key assumptions in this literature allowing for inelastic and heterogeneous labor supply elasticities of natives and the downgrading of immigrants downgrading occurs when the position of immigrants in the labor market is systematically lower than the position of natives with the same observed education and experience levels downgrading means that immigrants receive lower returns to the same measured skills than natives when these skills are acquired in their country of origin we show that heterogeneous labor supply elasticities if ignored may complicate the interpretation of wage estimates and particularly the interpretation of relative wage effects moreover downgrading may lead to biased estimates in those approaches that estimate relative effects of immigration but not in approaches that estimate total effects we conclude that empirical models that estimate total effects not only answer important policy questions but are also more robust to alternative assumptions than models that estimate relative effects

sustaining fiscal policy through immigration this paper explores the fiscal implications of immigration to the us and argues that immigration policy should be viewed as a vital part of fiscal policy in particular a case is made that skill

the dynamic impact of immigration on natives labor market outcomes evidence from israel abstract this paper studies the short and medium run impact of highly skilled immigrants from the former soviet union to israel on natives wages and employment if immigrants are relatively good substitutes for native workers the impact of immigration will be largest immediately upon the immigrants arrival and may become smaller as the labor market adjusts to the supply shock conversely if immigrants upon arrival are poor substitutes for natives the initial effect of immigration is small and increases over time as immigrants acquire local labor market skills and compete with native workers we empirically examine these alternative hypotheses using data from israel between 1989 and 1999 we find that wages of both men and women are negatively correlated with the fraction of immigrants with little local experience in a labor market segment a 10 percent increase in the share of immigrants lowers natives wages in the short run by 1 3 percent but this effect dissolves after 4 7 years this result is robust to a variety of different segmentations of the labor market to the inclusion of cohort effects and to different dynamic structures in the residual term of the wage equation on the other hand we do not find any effect of immigration on employment neither in the short nor in the medium run

the european framework for energy and climate policies european energy and climate change policy rests on two main pillars the internal energy market iem and the climate change package ccp the iem aimed at third party access and unbundling neglecting the physical infrastructure and the basis for asset valuations and hence the harmonisation of network charges the commission plans to complete the iem by 2014 almost a quarter of a century after embarking on the policy yet even if all the iem directives are implemented the eu will remain far from a single competitive market the ccp was grounded on short term targets the 2020 20 20 programme on the assumption that fossil fuel prices would rise making renewables competitive and hence yielding a competitive advantage to the eu the euets was intended to lead the way to a global trading system and an international agreement at copenhagen the eu has reduced the production of carbon emissions but only as a result of de industrialisation and slow growth and at the expense of rising carbon consumption renewables have not led to green growth but rather to a further eroding of competitiveness the euets price has collapsed in order for the eu to put the iem and the ccp back on track both need to be radically reconsidered the iem requires a refocusing on physical infrastructure common accounting rules and an eu wide approach to capacity markets and renewables trading the ccp requires a refocusing on carbon consumption on limiting the dash for coal and on future rather than current renewables

rethinking and reshaping the climate policy literature review and proposed guidelines abstract addressing climate change represents a governing the climate commons on a global scale the tragedy of the commons might better be described as the failure of governing the commons hardin s solutions were centralized government and private property which have long been criticized as oversimplified however governing the unprecedented climate commons there is only a global federalism of climate policy the kyoto protocol the kyoto cannot keep atmospheric co2 level below 450 ppm rising 2 c some key evidences of the kyoto failures are identified the kyoto failures do not indicate that the kyoto is a wrong tool of centralized government instead the kyoto failures are derived from the fact that the only centralized government cannot effectively govern the commons which have been proven by the efforts of governing the commons last four decades here we propose a wide diversity of governance systems for climate common to addressing global warming the multi level and multi scale governing system includes but is not limited to i starting at home ii emphasizing the local approach iii efforts of global level focusing these top emitters iv improved information sharing v privatizing the property of climate to avoid free riders vi combination mitigation with adaptive vii improved ecology services to expand carbon sinks we argue that the kyoto failures indicate again that reliance on a single solution may result in more of a problem than a solution in governing the common therefore continuing to wait for another global federalism of climate policy may lead to missing the chance to make significant mitigations and adaptations in time to battling the climate change post 2012 multi level and multi scale approaches could make a difference in collective action for governing the climate commons to meet climate challenge

immigration and wages evidence from construction to identify relative wage impacts of immigration we make use of certification and licensing requirements in the norwegian construction sector that give rise to exogenous variation in immigrant employment shares across trades individual panel data reveal substantially lower wage growth for workers in trades with rising immigrant employment than for other workers selective attrition from the sector masks the causal wage impact unless accounted for by individual fixed effects for low and semi skilled workers effects of new immigration are comparable for natives and older immigrant cohorts consistent with perfect substitutability between native and immigrant labor within trade finally we present evidence that immigration reduces price inflation as price increases over the sample period were significantly lower in activities with growth in the immigrant share than in activities with no or small change in immigrant employment

migration and imperfect labor markets theory and cross country evidence from denmark germany and the uk we investigate the labor market effects of immigration in denmark germany and the uk three countries which are characterized by considerable differences in labor market institutions and welfare states institutions such as collective bargaining minimum wages employment protection and unemployment benefits affect the way in which wages respond to labor supply shocks and hence the labor market effects of immigration we employ a wage setting approach which assumes that wages decline with the unemployment rate albeit imperfectly we find that the wage and employment effects of immigration depend on wage flexibility and the composition of the labor supply shock in germany immigration involves only moderate wage but large unemployment effects since immigrants are concentrated in labor market segments with low wage flexibility the reverse is true for the uk and denmark

the labor market impact of immigration in western germany in the 1990 s in this article we estimate the wage and employment effects of recent immigration in western germany using administrative data for the period 1987 2001 and a labor market equilibrium model we find that the substantial immigration of the 1990s had very little adverse effects on native wages and on their employment levels instead it had a sizeable adverse employment effect on previous immigrants as well as a small adverse effect on their wages these asymmetric results are partly driven by a higher degree of substitution between old and new immigrants in the labor market and in part by the rigidity of wages in less than flexible labor markets in a simple counter factual experiment we show that in a world of perfect wage flexibility and no unemployment insurance the wage bill loss of old immigrants would be much smaller

trend analysis of energy and climate policy environment comparative electricity production and consumption benchmark analyses of china euro area european union and united states abstract this study conducts a reality check on the electricity production and electricity consumption trends in china in the u s and in the euro area and in the eu most of our analyses cover years 1961 2011 the data is based on the world bank s database with supplementary iea database 2013 in this article we perform various trend analyses which are linked to electricity production and consumption developments these regions are major players in global climate change and climate policy our trend analyses indicate in many ways that china is now a global trend setter in climate change and climate policy upwards sloping trends were evident in the chinese energy economy however u s and the eu are still very important players trend analyses of this article indicate that the structures of electricity production and energy mixes are changing our benchmarking studies indicate that the role of renewables is increasing in electricity production and the role of oil based electricity production has drastically decreased the golden age of nuclear energy in electricity production seems to be over at least turning points can be found in trend developments empirical trade off analyses of the study verified conventional research results about high linear correlation coefficients regression models between electricity production and gdp as well as between population and gpd in all regions correlation coefficients measure the strength of association between two variables what was interesting is that our comparative analyses revealed some remarkable differences in linear regression equation coefficients one of them was that the coefficient between population and electricity production is much lower in china than in the u s or in the eu second finding was that the coefficient of the regression model describing linear relationship between gdp and electricity production is highest in china in comparison to the other regions

targets for global climate policy an overview a survey of the economic impact of climate change and the marginal damage costs shows that carbon dioxide emissions are a negative externality the estimated pigou tax and its growth rate are too low to justify the climate policy targets set by political leaders a lower discount rate or greater concern for the global distribution of income would justify more stringent climate policy but would imply an overhaul of other public policies catastrophic risk justifies more stringent climate policy but only to a limited extent

the impact of 1970s repatriates from africa on the portuguese labor market this paper examines the labor market effect of the retornados who immigrated to portugal from angola and mozambique in the mid 1970s following portugal s loss of its african colonies the retornados increased the portuguese labor force by roughly 10 in just three years two analyses suggest contrasting conclusions first comparisons of portugal with spain and france indicate that any adverse effect of the retornados was quantitatively swamped by the europe wide downturn in labor market conditions in the 1970s second comparisons between districts within portugal indicate that the retornados may have had a strong adverse effect on portuguese wages suggesting that immigration may be considerably more harmful than previous case studies have concluded the authors however regard the results of the within portugal analysis as less reliable than those of the comparison across countries

the effect of immigration on wages exploiting exogenous variation at the national level this paper estimates the effect of immigration on native wages at the national level taking into account the endogenous allocation of immigrants across skill cells time varying exogenous variation across skill cells for a given country is provided by interactions of push factors distance and skill cell dummies distance mitigates the effect of push factors more severely for less educated and middle experienced because the analysis focuses on the united states and canada i propose a two stage approach sub sample 2sls that estimates the first stage regression with an augmented sample of destination countries and the second stage equation with the restricted sub sample of interest i derive asymptotic results for this estimator and suggest several applications beyond the current one the empirical analysis indicates a substantial bias in estimated ols wage elasticities to immigration sub sample 2sls estimates average 1 2 and are very stable to the use of alternative instruments

the impact of immigration on the labor market the literature on the impact of immigration on the labor market is highly controversial the aim of this paper is to review the existing literature and draw some general conclusions on how wages and employment respond to immigration economic studies indicate that the impact of immigration on the average wage and employment of native workers is null or slightly positive however because adjustments take time the immediate labor market effects of unexpected as opposed to expected migration episodes can be detrimental immigration also can have distributional consequences in particular the skill composition of immigrants matters in determining their impact on native labor market outcomes an inflow of immigrants will tend to reduce the wages of competing native workers with skills similar to those of the migrants and increase those of complementary workers with skills that complement those of immigrants by affecting the skill composition of the workforce immigration can create winners and losers among native workers via changes in the wage structure

assessing inherent model bias an application to native displacement in response to immigration abstract there is a long standing debate among academics about the effect of immigration on native internal migration decisions if immigrants displace natives this may indicate a direct cost of immigration in the form of decreased employment opportunity for native workers moreover displacement would also imply that cross region analyses of wage effects systematically underestimate the consequences of immigration the widespread use of such area studies for the us and other countries makes it especially important to know whether a native internal response to immigration truly occurs this paper introduces a microsimulation methodology to test for inherent bias in regression models that have been used in the literature we show that some specifications have built biases into their models thereby casting doubt on the validity of their results we then provide a brief empirical analysis with a panel of observed us state by skill data together our evidence argues against the existence of native displacement this implies that cross region analyses of immigration s effect on wages are still informative

the labour market effects of immigration and emigration in oecd countries in this paper we quantify the labor market effects of migration flows in oecd countries during the 1990 s based on a new global database on the bilateral stock of migrants by education level we simulate various outcomes using an aggregate model of labor markets parameterized by a range of estimates from the literature we find that immigration had a positive effect on the wages of less educated natives and it increased or left unchanged the average native wages emigration instead had a negative effect on the wages of less educated native workers and increased inequality within countries

global estimates of energy growth nexus application of seemingly unrelated regressions as the world struggles to emerge from a global recession and financial crisis countries are looking for solutions to improve domestic economic performance and put people back to work global energy demand and prices have been resilient during the recession leading policy makers in countries with the potential to produce energy to look to that sector as a potential engine for economic growth the objective of this study is to undertake an empirical study on linkages among energy consumption economic growth fdi relative price and financial development i e broad money supply m2 in low income middle income high income non oecd high income oecd south africa middle east and north africa mena and the aggregate data of the world over a period of 1975 2011 data is analyzed by the im pesaran shin ips test of unit root to find out the order of integration the long run relationship is investigated through the pedroni 37 test of panel cointegration at last the seemingly unrelated regression sur method is used for estimation of the impact of growth factors on energy consumption in these regions the results reveal that each variable seem to have a unit root at level so we could investigate cointegration of the series at level on the basis of pedroni test we can bring to a close that series are cointegrated the results of seemingly unrelated regression sur suggests that gdp per capita has a positive impact on energy consumption in low income middle income south africa mena and aggregate data of the world however in high income oecd and non oecd regions there is no significant relationship been found in both regions fdi plays a pivotal role in increasing energy demand in middle income high income oecd and non oecd region which implies that whatever other benefits may accrue from fdi it should not be expected to generate sufficient energy in south africa mena and the world directly fdi enhancement policies should be supplemented to stimulate growth in those regions broad money supply exerts positive impact on energy demand in low income middle income high income non oecd and mena regions finally relative prices has either a positive impact i e middle income region and or a negative impact on energy consumption i e low income high income oecd and mena region the results conclude that lower energy prices reduce input costs for nearly all goods and services in the regions thus making them more affordable