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Fossil fuel share in the energy mix and economic growth

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  • Kibria, Ahsan
  • Akhundjanov, Sherzod B.
  • Oladi, Reza

Abstract

After the Paris Agreement in 2016 fossil fuel share in the energy mix has become a debatable issue within the policy-circles of different countries as they start rolling out their plans to meet the requirements and targets of the agreement. In this paper, we examine the relationship between fossil fuel share in the energy mix and real income using a panel of 151 countries from 1971 to 2013. A cursory examination of the data suggests that there may exist a polynomial relationship between fossil fuel share and income, a phenomenon that we coin as energy mix Kuznets curve (EMKC). Although our parametric estimates provide evidence in support of this hypothesis, the results are sensitive to polynomial model specification. The results from nonparametric analysis, which places no restrictions on the functional form, provide support in favor of the EMKC.

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  • Kibria, Ahsan & Akhundjanov, Sherzod B. & Oladi, Reza, 2019. "Fossil fuel share in the energy mix and economic growth," International Review of Economics & Finance, Elsevier, vol. 59(C), pages 253-264.
    • Handle: RePEc:eee:reveco:v:59:y:2019:i:c:p:253-264
    DOI: 10.1016/j.iref.2018.09.002
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    More about this item

    Keywords

    Energy mix; Fossil fuel; Kuznets curve;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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