The development of countries in economic transition is often misunderstood. These countries are neither underdeveloped nor are they developed, they are somewhere in between. Therefore, macroeconomic models of transitional economies must include aspects of both underdeveloped and developed...

In this paper, we argue that improved energy efficiency leads to increased consumption of energy for the transitional economies of Romania, Bulgaria, Poland, and Hungary. The concept that energy consumption increases with improved energy efficiency is known as Jevons’ Paradox. We will provide...