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Are Fluctuations in Energy Consumption Transitory or Permanent? Evidence From a Panel of East Asia & Pacific Countries

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  • Hakan Kum

    (Faculty of Economics and Administrative Sciences,Department of Economics, Nevsehir University)

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    Abstract

    This paper examines the unit root properties of energy consumption per capita for 15 East Asia & Pacific countries employing the Lagrange Multiplier (LM) panel unit root test with one structural break for 1971-2007. When we apply the LM univariate test without break, we find a unit root in per capita consumption for Brunei Darussalam, Indonesia, Japan, North Korea, South Korea and Myanmar. However, when we apply LM unit root with structural break, we find overwhelming evidence that there is no unit root in per capita energy consumption for these 15 East Asia & Pacific countries.

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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

    Volume (Year): 2 (2012)
    Issue (Month): 3 ()
    Pages: 92-96

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    Handle: RePEc:eco:journ2:2012-03-1

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    Related research

    Keywords: Energy consumption; Unit root; Stationarity; Lagrange Multiplier; Panel unit root test.;

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    Cited by:
    1. Smyth, Russell, 2013. "Are fluctuations in energy variables permanent or transitory? A survey of the literature on the integration properties of energy consumption and production," Applied Energy, Elsevier, vol. 104(C), pages 371-378.
    2. Hooi Hooi Lean & Russell Smyth, 2013. "Will initiatives to promote hydroelectricity consumption be effective? Evidence from univariate and panel LM unit root tests with structural breaks," Development Research Unit Working Paper Series 47-13, Monash University, Department of Economics.

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