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Mean Reverting Behavior of Energy Consumption: Evidence from Selected MENA Countries

Author

Listed:
  • Suleyman Bolat

    (Cumhuriyet University, Department of Public Finance, Sivas, Turkey)

  • Murat Belke

    (Akdeniz University, Department of Economics, Antalya, Turkey)

  • Necati Celik

    (University of Utah, Department of Economics, Salt Lake City, UT, USA)

Abstract

This study examines whether the energy consumption for 15 members of the Middle Eastern & North African (MENA) countries is a stationary process over 1971-2010 period. Annual energy consumption data for Algeria, Bahrain, Egypt, Iran, Israel, Jordan, Lebanon, Libya, Morocco, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Turkey, is analyzed using the Lagrange Multiplier (LM) unit root test, in which structural breaks in level and/or trend are endogenously determined. The results of the LM test with two breaks showed that the energy consumption per capita in 8 MENA countries is a stationary process. This study suggests that it is possible to design consistent energy policies based on econometric models and forecasts of energy consumption in those 8 MENA countries.

Suggested Citation

  • Suleyman Bolat & Murat Belke & Necati Celik, 2013. "Mean Reverting Behavior of Energy Consumption: Evidence from Selected MENA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 3(4), pages 315-320.
    • Handle: RePEc:eco:journ2:2013-04-16
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    References listed on IDEAS

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    Cited by:

    1. Bozoklu, Seref & Yilanci, Veli & Gorus, Muhammed Sehid, 2020. "Persistence in per capita energy consumption: A fractional integration approach with a Fourier function," Energy Economics, Elsevier, vol. 91(C).
    2. Guglielmo Maria Caporale & Luis A. Gil-Alana & Manuel Monge, 2019. "Energy Consumption in the GCC Countries: Evidence on Persistence," CESifo Working Paper Series 7470, CESifo.
    3. Mohamed Osman & Ariful Hoque & Geoffrey Gachino, 2018. "Structural Breaks and Energy Consumption in the Gulf Cooperation Council Countries: Are Random Shocks Transitory or Permanent?," Australian Economic Papers, Wiley Blackwell, vol. 57(4), pages 446-455, December.
    4. Emmanuel Anoruo & William R. DiPietro, 2014. "Convergence in Per Capita Energy Consumption among African Countries: Evidence from Sequential Panel Selection Method," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 568-577.
    5. repec:ipg:wpaper:2014-589 is not listed on IDEAS
    6. Yifei Cai & Cosimo Magazzino, 2019. "Are shocks to natural gas consumption transitory or permanent? A more powerful panel unit root test on the G7 countries," Natural Resources Forum, Blackwell Publishing, vol. 43(2), pages 111-120, May.
    7. Ozcan, Burcu & Ozturk, Ilhan, 2016. "A new approach to energy consumption per capita stationarity: Evidence from OECD countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 332-344.
    8. Kassouri, Yacouba, 2022. "Boom-bust cycles in oil consumption: The role of explosive bubbles and asymmetric adjustments," Energy Economics, Elsevier, vol. 111(C).
    9. Shahbaz, Muhammad & Khraief, Naceur & Mahalik, Mantu Kumar & Zaman, Khair Uz, 2014. "Are fluctuations in natural gas consumption per capita transitory? Evidence from time series and panel unit root tests," Energy, Elsevier, vol. 78(C), pages 183-195.
    10. Shahbaz, Muhammad & Omay, Tolga & Roubaud, David, 2019. "Sharp and Smooth Breaks in Unit Root Testing of Renewable Energy Consumption: The Way Forward," MPRA Paper 92176, University Library of Munich, Germany, revised 11 Feb 2019.

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    More about this item

    Keywords

    Energy Consumption; Unit Root; LM test; MENA;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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