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U.S. Disaggregated renewable energy consumption: Persistence and long memory behavior

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  • Barros, Carlos Pestana
  • Gil-Alana, Luis A.
  • Payne, James E.

Abstract

This study examines the degree of time persistence in U.S. disaggregated renewable energy consumption (hydropower, geothermal, solar, wind, wood, waste, and biofuels) using innovative fractional integration and autoregressive models with monthly data for the period 1994:2 to 2011:10. The results indicate that in the case of hydropower, solar, wind, waste, and biofuels the estimates of fractional integration are higher than 0.5 but less than 1.0 implying nonstationary, but mean reverting behavior. In the case of geothermal and waste the estimates of fractional integration are around 0.5 and in the boundary case between stationarity and nonstationarity. For wood, the estimate of fractional integration is significantly smaller than 0.5 and thus showing stationary behavior with long memory behavior. Furthermore, the study incorporates the presence of breaks in the data with the absence of breaks in hydropower, geothermal, solar, wind, wood, and biofuels, but a single break in the case of waste due to the inclusion of non-renewable waste from non-biogenic sources through 2000. The results reveal that U.S. disaggregated renewable energy consumption measures are better explained in terms of a long memory model that incorporates persistence components and seasonality.

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  • Barros, Carlos Pestana & Gil-Alana, Luis A. & Payne, James E., 2013. "U.S. Disaggregated renewable energy consumption: Persistence and long memory behavior," Energy Economics, Elsevier, vol. 40(C), pages 425-432.
    • Handle: RePEc:eee:eneeco:v:40:y:2013:i:c:p:425-432
    DOI: 10.1016/j.eneco.2013.07.018
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    Cited by:

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    2. Firouz Fallahi, 2019. "Persistence and stationarity of sectoral energy consumption in the US: A confidence interval approach," Energy & Environment, , vol. 30(5), pages 882-897, August.
    3. Gozgor, Giray, 2016. "Are shocks to renewable energy consumption permanent or transitory? An empirical investigation for Brazil, China, and India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 913-919.
    4. Apergis, Nicholas & Payne, James E., 2014. "Renewable energy, output, CO2 emissions, and fossil fuel prices in Central America: Evidence from a nonlinear panel smooth transition vector error correction model," Energy Economics, Elsevier, vol. 42(C), pages 226-232.
    5. 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.
    6. 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.
    7. 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.
    8. Lean, Hooi Hooi & Smyth, Russell, 2014. "Will initiatives to promote hydroelectricity consumption be effective? Evidence from univariate and panel LM unit root tests with structural breaks," Energy Policy, Elsevier, vol. 68(C), pages 102-115.
    9. Motlagh, Omid & Paevere, Phillip & Hong, Tang Sai & Grozev, George, 2015. "Analysis of household electricity consumption behaviours: Impact of domestic electricity generation," Applied Mathematics and Computation, Elsevier, vol. 270(C), pages 165-178.
    10. Mishra, Vinod & Smyth, Russell, 2017. "Conditional convergence in Australia's energy consumption at the sector level," Energy Economics, Elsevier, vol. 62(C), pages 396-403.
    11. Janesh Sami, 2021. "The Response of Hotel Room Occupancy Rate in Fiji to Shocks: Empirical Evidence from Unit Root Tests with Endogenous Multiple Structural Breaks," International Journal of Economics and Financial Issues, Econjournals, vol. 11(5), pages 11-16.
    12. 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.
    13. Lee, Chien-Chiang & Ranjbar, Omid & Lee, Chi-Chuan, 2021. "Testing the persistence of shocks on renewable energy consumption: Evidence from a quantile unit-root test with smooth breaks," Energy, Elsevier, vol. 215(PB).
    14. Schneider, Nicolas & Strielkowski, Wadim, 2023. "Modelling the unit root properties of electricity data—A general note on time-domain applications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 618(C).
    15. Janesh Sami, 2020. "Time Series Dynamics of Sugar Export Earnings in Fiji with Multiple Endogenous Structural Breaks: Implications for EU Sugar and Industry Reforms," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(1), pages 169-189, March.
    16. 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

    Renewable energy consumption; Unit roots; Long memory models; Persistence;
    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
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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