Advanced Search
MyIDEAS: Login

Urbanization and renewable and non-renewable energy consumption in OECD countries: An empirical analysis

Contents:

Author Info

  • Salim, Ruhul A.
  • Shafiei, Sahar

Abstract

This article aims to analyse the impact of urbanization on renewable and non-renewable energy consumption in OECD countries by using the STIRPAT model and data for the period of 1980 to 2011. Demographic factors including total population, urbanization and population density are found to be significant factors, particularly with respect to non-renewable energy consumption. The results also reveal that while total population and urbanization positively influence non-renewable energy consumption, population density has a negative impact on non-renewable energy consumption. From the demographic factors only total population has a significant impact on renewable energy consumption. Granger causality results indicate that there is unidirectional causality from non-renewable energy use to population density in the short run. However, no causal linkage is found between urbanization and non-renewable energy use. Likewise, no causal direction is seen between renewable energy use and any of the demographic factors.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0264999314000522
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 38 (2014)
Issue (Month): C ()
Pages: 581-591

as in new window
Handle: RePEc:eee:ecmode:v:38:y:2014:i:c:p:581-591

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411

Related research

Keywords: Renewable energy consumption; Non-renewable energy consumption; CO2 emissions; Urbanization; STIRPAT model;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Islam, Faridul & Shahbaz, Muhammad & Ahmed, Ashraf U. & Alam, Md. Mahmudul, 2013. "Financial development and energy consumption nexus in Malaysia: A multivariate time series analysis," Economic Modelling, Elsevier, vol. 30(C), pages 435-441.
  2. Donggyu Sul & Peter C.B. Phillips & Choi, Chi-Young, 2003. "Prewhitening Bias in HAC Estimation," Cowles Foundation Discussion Papers 1436, Cowles Foundation for Research in Economics, Yale University.
  3. Lozano, Sebastián & Gutiérrez, Ester, 2008. "Non-parametric frontier approach to modelling the relationships among population, GDP, energy consumption and CO2 emissions," Ecological Economics, Elsevier, vol. 66(4), pages 687-699, July.
  4. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
  5. Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
  6. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  7. Liu, Yaobin, 2009. "Exploring the relationship between urbanization and energy consumption in China using ARDL (autoregressive distributed lag) and FDM (factor decomposition model)," Energy, Elsevier, vol. 34(11), pages 1846-1854.
  8. Peter C.B. Phillips & Donggyu Sul, 2004. "Bias in Dynamic Panel Estimation with Fixed Effects, Incidental Trends and Cross Section Dependence," Yale School of Management Working Papers ysm428, Yale School of Management.
  9. Hsueh, Shun-Jen & Hu, Yu-Hau & Tu, Chien-Heng, 2013. "Economic growth and financial development in Asian countries: A bootstrap panel Granger causality analysis," Economic Modelling, Elsevier, vol. 32(C), pages 294-301.
  10. M. Hashem Pesaran, 2004. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," CESifo Working Paper Series 1331, CESifo Group Munich.
  11. Shahbaz, Muhammad & Zeshan, Muhammad & Afza, Talat, 2012. "Is energy consumption effective to spur economic growth in Pakistan? New evidence from bounds test to level relationships and Granger causality tests," Economic Modelling, Elsevier, vol. 29(6), pages 2310-2319.
  12. Mindali, Orit & Raveh, Adi & Salomon, Ilan, 2004. "Urban density and energy consumption: a new look at old statistics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(2), pages 143-162, February.
  13. Westerlund, Joakim, 2005. "Testing for Error Correction in Panel Data," Working Papers 2005:11, Lund University, Department of Economics.
  14. Poumanyvong, Phetkeo & Kaneko, Shinji & Dhakal, Shobhakar, 2012. "Impacts of urbanization on national transport and road energy use: Evidence from low, middle and high income countries," Energy Policy, Elsevier, vol. 46(C), pages 268-277.
  15. Westerlund, Joakim, 2005. "Testing for Panel Cointegration with Multiple Structural Breaks," Working Papers 2005:12, Lund University, Department of Economics.
  16. Liang, Chin-Chia & Lin, Jeng-Bau & Hsu, Hao-Cheng, 2013. "Reexamining the relationships between stock prices and exchange rates in ASEAN-5 using panel Granger causality approach," Economic Modelling, Elsevier, vol. 32(C), pages 560-563.
  17. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  18. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  19. Shahbaz, Muhammad & Lean, Hooi Hooi, 2012. "Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia," Energy Policy, Elsevier, vol. 40(C), pages 473-479.
  20. Josep Lluis Carrion Silvestre & Tomas del Barrio Castro & Enrique Lopez Bazo, 2003. "Breaking the panels. An application to the GDP per capita," Working Papers in Economics 97, Universitat de Barcelona. Espai de Recerca en Economia.
  21. Pesaran, M. Hashem & Tosetti, Elisa, 2011. "Large panels with common factors and spatial correlation," Journal of Econometrics, Elsevier, vol. 161(2), pages 182-202, April.
  22. O'Neill, Brian C. & Ren, Xiaolin & Jiang, Leiwen & Dalton, Michael, 2012. "The effect of urbanization on energy use in India and China in the iPETS model," Energy Economics, Elsevier, vol. 34(S3), pages S339-S345.
  23. York, Richard & Rosa, Eugene A. & Dietz, Thomas, 2003. "STIRPAT, IPAT and ImPACT: analytic tools for unpacking the driving forces of environmental impacts," Ecological Economics, Elsevier, vol. 46(3), pages 351-365, October.
  24. Shi, Anqing, 2003. "The impact of population pressure on global carbon dioxide emissions, 1975-1996: evidence from pooled cross-country data," Ecological Economics, Elsevier, vol. 44(1), pages 29-42, February.
  25. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
  26. Mishra, Vinod & Smyth, Russell & Sharma, Susan, 2009. "The energy-GDP nexus: Evidence from a panel of Pacific Island countries," Resource and Energy Economics, Elsevier, vol. 31(3), pages 210-220, August.
  27. Halicioglu, Ferda, 2007. "Residential electricity demand dynamics in Turkey," Energy Economics, Elsevier, vol. 29(2), pages 199-210, March.
  28. Hankey, Steve & Marshall, Julian D., 2010. "Impacts of urban form on future US passenger-vehicle greenhouse gas emissions," Energy Policy, Elsevier, vol. 38(9), pages 4880-4887, September.
  29. Pasaran, M.H. & Im, K.S. & Shin, Y., 1995. "Testing for Unit Roots in Heterogeneous Panels," Cambridge Working Papers in Economics 9526, Faculty of Economics, University of Cambridge.
  30. Lamia Kamal-Chaoui & Alexis Robert, 2009. "Competitive Cities and Climate Change," OECD Regional Development Working Papers 2009/2, OECD Publishing.
  31. Zhang, Chuanguo & Lin, Yan, 2012. "Panel estimation for urbanization, energy consumption and CO2 emissions: A regional analysis in China," Energy Policy, Elsevier, vol. 49(C), pages 488-498.
  32. Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
  33. Lariviere, Isabelle & Lafrance, Gaetan, 1999. "Modelling the electricity consumption of cities: effect of urban density," Energy Economics, Elsevier, vol. 21(1), pages 53-66, February.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:38:y:2014:i:c:p:581-591. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.