Globalization in Reverse: The Missing Link in Energy Consumption
We present a theoretical framework that demonstrates the globalization as a beneficial trend which fosters the movement of advanced technology from developed nations to developing countries leading to the deployment of large scale energy projects on renewable technologies. We explore the implications of this framework with panel data and vector autoregressive (VAR) analyses. These suggest that an increase in social globalization which accounts for the spread of know-how, skilled workers and technology by 1 percent reduces the energy consumption by roughly 21 percent. This lead to increasing the employment of clean and renewable energy sources through the attainment of technological efficiency. However, substantial increase in traditional energy demand from developing countries suggests the trend of anti-globalization.
