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Is there convergence in per capita renewable energy consumption across U.S. States? Evidence from LM and RALS-LM unit root tests with breaks

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  • Payne, James E.
  • Vizek, Maruška
  • Lee, Junsoo

Abstract

Given the federal and state policy initiatives to curb fossil fuel consumption and expand the use of renewable energy sources in the U.S., this study investigates the convergence properties of per capita renewable energy consumption across U.S. states (including the District of Columbia). In addition to cross-sectional tests of β- and σ-convergence, our study employs LM and RALS-LM unit root tests with endogenously determined structural breaks to test for stochastic convergence. Traditional cross-sectional tests indicate that both β- and σ-convergence of per capita renewable energy consumption exists across U.S. states. Moreover, our results also provides clear support for stochastic convergence of per capita renewable energy consumption for a majority of U.S. states (including the District of Columbia) once allowance is made for structural breaks.

Suggested Citation

  • Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Is there convergence in per capita renewable energy consumption across U.S. States? Evidence from LM and RALS-LM unit root tests with breaks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 715-728.
    • Handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:715-728
    DOI: 10.1016/j.rser.2016.11.252
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    More about this item

    Keywords

    Per capita renewable energy consumption; Convergence; Unit roots; Trend-shifts;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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