Abstract:
Urbanization has emerged as a critical determinant of energy consumption patterns, particularly in
developing economies experiencing rapid economic and demographic transitions. This study
investigates the relationship between urbanization and energy demand through a comparative
analysis of four rapidly urbanizing South and Southeast Asian nations: Sri Lanka, India,
Bangladesh, and Vietnam. Covering the period from 1990 to 2023, the research employs advanced
panel data econometric techniques to provide robust empirical evidence on how urban expansion
influences energy use in these developing contexts. The analysis utilizes both fixed-effects and
random-effects models to account for country-specific heterogeneity while examining the core
relationship between urbanization and total energy consumption. To isolate urbanization’s distinct
impact, the study controls for several key variables: GDP per capita, industrial and services value
added, and renewable energy adoption (indicating sustainability efforts). The empirical results
demonstrate that urbanization exerts a statistically significant positive effect on energy
consumption across all sample countries, though the effect size varies considerably. Notably, the
energy-urbanization elasticity is highest in Vietnam and lowest in Sri Lanka, reflecting differences
in urban infrastructure quality and industrial composition. The study finds that industrialization
acts as an amplifying factor, while greater renewable energy penetration serves as a moderating
influence on urban energy demand. These findings carry important policy implications for
sustainable development in the Global South. The results suggest that urban planning strategies
should prioritize energy-efficient infrastructure development and accelerated renewable energy
adoption to mitigate the environmental impacts of rapid urbanization. Furthermore, the country
specific variations highlight the need for tailored policy approaches that consider national
economic structures and urbanization trajectories. This study contributes to the broader literature
on urban energy systems by providing comparative, empirically grounded insights from four key
Asian emerging economies.
