Romero de Ávila Torrijos, DiegoOmay, Tolga2024-02-212024-02-212022Energy Economics, Volume 111, July 2022, 10606210.1016/j.eneco.2022.106062https://hdl.handle.net/10433/20190This paper investigates the existence of stochastic and deterministic convergence in per capita energy consumption among the countries forming four income-level groups and a full sample of 110 countries over the 1971–2019 period. For that purpose, we employ six state-of-the-art nonlinear panel unit root tests with nonlinear dynamics that range from state-dependent nonlinearities such as ESTAR, AESTAR and TAR dynamics to time-dependent nonlinearities of structural break form. We find consistent evidence supporting stochastic convergence among high-income and upper-middle-income countries according to two of the six panel tests. Concerning the stronger notion of deterministic convergence, three tests point to deterministic convergence among high-income countries, and only one supports this hypothesis among upper-middle-income countries. Lack of convergence across all country groups carries important policy implications concerning the achievement of SDG7 of the global 2030 Agenda for Sustainable Development that affects every single country in the planet. Highlights • This paper investigates stochastic and deterministic convergence in per capita energy consumption around the world. • We employ six state-of-the-art nonlinear panel unit root tests with nonlinear dynamics. • They range from state-dependent nonlinearities to time-dependent nonlinearities of structural break form. • Two tests support stochastic convergence among high-income and upper-middle-income countries. • Three tests point to deterministic convergence among high-income countries, and only one among upper-middle-income countries.Proyectos de investigación Spanish Ministry of Science, Innovation and Universities [grant number ECO2017–86780-R, AEI/FEDER, UE] Junta de Andalucía-FEDER [grants number I+D+i project P20_00808] Junta de Andalucía-FEDER [PAIDI SEJ-513]This paper investigates the existence of stochastic and deterministic convergence in per capita energy consumption among the countries forming four income-level groups and a full sample of 110 countries over the 1971–2019 period. For that purpose, we employ six state-of-the-art nonlinear panel unit root tests with nonlinear dynamics that range from state-dependent nonlinearities such as ESTAR, AESTAR and TAR dynamics to time-dependent nonlinearities of structural break form. We find consistent evidence supporting stochastic convergence among high-income and upper-middle-income countries according to two of the six panel tests. Concerning the stronger notion of deterministic convergence, three tests point to deterministic convergence among high-income countries, and only one supports this hypothesis among upper-middle-income countries. Lack of convergence across all country groups carries important policy implications concerning the achievement of SDG7 of the global 2030 Agenda for Sustainable Development that affects every single country in the planet.application/pdfenAttribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/Panel unit root testsEnergy consumption convergenceNonlinearitiesTime-dependenceState-dependenceLSTR processESTAR processAESTAR processSign nonlinearitySize nonlinearityStructural breaks2030 Agenda for Sustainable Developmentjournal articleopen access