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Convergence and persistence in per capita energy use among OECD countries: Revisited using confidence intervals

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  • Fallahi, Firouz
  • Voia, Marcel-Cristian

Abstract

This paper investigates the convergence in per capita energy use of a group of 25 OECD countries over the period 1960–2012. Unlike the previous studies, which mainly used unit root tests, in this study, we construct subsampling confidence intervals to assess the convergence in the per capita energy use. These confidence intervals are more informative than the unit root tests, as they provide us with further information on the degree of persistence of the energy use. Our findings suggest that the per capita energy use in Australia, Austria, Belgium, Denmark, Finland, Greece, Italy, Japan, Luxembourg, Netherlands, Norway, Spain, and Switzerland has a convergent pattern. However, the per capita energy use in Greece, Luxemburg, and Spain appear to be very persistent. For the rest of the countries, i.e. 12 countries, we see a divergent pattern.

Suggested Citation

  • Fallahi, Firouz & Voia, Marcel-Cristian, 2015. "Convergence and persistence in per capita energy use among OECD countries: Revisited using confidence intervals," Energy Economics, Elsevier, vol. 52(PA), pages 246-253.
  • Handle: RePEc:eee:eneeco:v:52:y:2015:i:pa:p:246-253
    DOI: 10.1016/j.eneco.2015.10.004
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    Cited by:

    1. repec:eee:eneeco:v:65:y:2017:i:c:p:228-239 is not listed on IDEAS
    2. 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.
    3. Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Stochastic convergence in per capita fossil fuel consumption in U.S. states," Energy Economics, Elsevier, vol. 62(C), pages 382-395.
    4. Mohammadi, Hassan & Ram, Rati, 2017. "Convergence in energy consumption per capita across the US states, 1970–2013: An exploration through selected parametric and non-parametric methods," Energy Economics, Elsevier, vol. 62(C), pages 404-410.
    5. Hooi Hooi Lean & Vinod Mishra & Russell Smyth, 2016. "Conditional convergence in US disaggregated petroleum consumption at the sector level," Applied Economics, Taylor & Francis Journals, vol. 48(32), pages 3049-3061, July.
    6. 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.
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    8. repec:eee:eneeco:v:76:y:2018:i:c:p:519-531 is not listed on IDEAS
    9. repec:eee:energy:v:152:y:2018:i:c:p:129-143 is not listed on IDEAS
    10. repec:eee:appene:v:228:y:2018:i:c:p:916-927 is not listed on IDEAS

    More about this item

    Keywords

    Energy use; Convergence; Persistence; Confidence interval; Subsampling;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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