IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v150y2021ics0301421521000203.html
   My bibliography  Save this article

Stochastic convergence of disaggregated energy consumption per capita and its catch-up rate: An independent analysis of MENA net oil-exporting and importing countries

Author

Listed:
  • Ahmed Qahtan, Anwar Saeed
  • Xu, Helian
  • Abdo, AL-Barakani

Abstract

Investigating the stochastic convergence of energy consumption per capita and its catch-up rate is important for policies in energy demand and supply as well as environmental management, hence, the coming up of this paper with reference to the MENA oil-exporting and importing nations for the period of 1990–2016 using advances in unit root tests including the panel KPSS test with breaks; two-step LM test with breaks and Residual Augmented Least Squares-Lagrange multiplier (RALS-LM) test with breaks. The findings from the panel test revealed stochastic convergence in total, nonrenewable, and renewable energy consumption for all the panels in both groups except the catch-up rate panel of total energy consumption of the net oil-importing nations while the univariate tests in the MENA net oil-exporting nations uncovered stochastic convergence in total (54% of the sample), nonrenewable (54% of the sample), and renewable (70% of the sample) whereas, in the MENA net oil-importing nations, total (64% of the sample), non-renewable (55% of the sample), and renewable (73% of the sample). However, in the catch-up rate of the MENA net oil-importing nations, total (45% of the sample), nonrenewable (73% of the sample), and renewable (73% of the sample). Policy implications were made.

Suggested Citation

  • Ahmed Qahtan, Anwar Saeed & Xu, Helian & Abdo, AL-Barakani, 2021. "Stochastic convergence of disaggregated energy consumption per capita and its catch-up rate: An independent analysis of MENA net oil-exporting and importing countries," Energy Policy, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:enepol:v:150:y:2021:i:c:s0301421521000203
    DOI: 10.1016/j.enpol.2021.112151
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421521000203
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2021.112151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Murthy, Vasudeva & Okunade, Albert, 2018. "Is the health care price inflation in US urban areas stationary? Evidence from panel unit root tests," Journal of Economics, Finance and Administrative Science, Universidad ESAN, vol. 23(44), pages 77-94.
    2. 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.
    3. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.
    4. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    5. 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.
    6. Mohitosh Kejriwal & Pierre Perron, 2010. "A sequential procedure to determine the number of breaks in trend with an integrated or stationary noise component," Journal of Time Series Analysis, Wiley Blackwell, vol. 31(5), pages 305-328, September.
    7. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    8. Kejriwal, Mohitosh & Perron, Pierre, 2010. "Testing for Multiple Structural Changes in Cointegrated Regression Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 28(4), pages 503-522.
    9. Mishra, Vinod & Smyth, Russell, 2014. "Convergence in energy consumption per capita among ASEAN countries," Energy Policy, Elsevier, vol. 73(C), pages 180-185.
    10. Krištić, Irena Raguž & Dumančić, Lucija Rogić & Arčabić, Vladimir, 2019. "Persistence and stochastic convergence of euro area unemployment rates," Economic Modelling, Elsevier, vol. 76(C), pages 192-198.
    11. Bernard, Andrew B & Durlauf, Steven N, 1995. "Convergence in International Output," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-108, April-Jun.
    12. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
    13. Lei Pan & Svetlana Maslyuk-Escobedo, 2019. "Stochastic convergence in per capita energy consumption and its catch-up rate: evidence from 26 African countries," Applied Economics, Taylor & Francis Journals, vol. 51(24), pages 2566-2590, May.
    14. Chen, Pei-Fen & Lee, Chien-Chiang, 2007. "Is energy consumption per capita broken stationary? New evidence from regional-based panels," Energy Policy, Elsevier, vol. 35(6), pages 3526-3540, June.
    15. Griffiths, Steven, 2017. "A review and assessment of energy policy in the Middle East and North Africa region," Energy Policy, Elsevier, vol. 102(C), pages 249-269.
    16. Junsoo Lee & Mark C. Strazicich, 2003. "Minimum Lagrange Multiplier Unit Root Test with Two Structural Breaks," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1082-1089, November.
    17. Junsoo Lee & Mark C. Strazicich & Ming Meng, 2012. "Two-Step LM Unit Root Tests with Trend-Breaks," Journal of Statistical and Econometric Methods, SCIENPRESS Ltd, vol. 1(2), pages 1-8.
    18. Apergis, Nicholas & Loomis, David & Payne, James E., 2010. "Are shocks to natural gas consumption temporary or permanent? Evidence from a panel of U.S. states," Energy Policy, Elsevier, vol. 38(8), pages 4734-4736, August.
    19. Hakan Kum, 2012. "Are Fluctuations in Energy Consumption Transitory or Permanent? Evidence From a Panel of East Asia & Pacific Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 2(3), pages 92-96.
    20. Jushan Bai & Pierre Perron, 1998. "Estimating and Testing Linear Models with Multiple Structural Changes," Econometrica, Econometric Society, vol. 66(1), pages 47-78, January.
    21. 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.
    22. Aslan, Alper, 2011. "Does natural gas consumption follow a nonlinear path over time? Evidence from 50 US States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4466-4469.
    23. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
      • Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
      • Barro, Robert J. & Sala-i-Martin, Xavier, 1992. "Convergence," Scholarly Articles 3451299, Harvard University Department of Economics.
    24. Fallahi, Firouz, 2017. "Stochastic convergence in per capita energy use in world," Energy Economics, Elsevier, vol. 65(C), pages 228-239.
    25. Josep Lluís Carrion-i-Silvestre & Tomás del Barrio-Castro & Enrique López-Bazo, 2005. "Breaking the panels: An application to the GDP per capita," Econometrics Journal, Royal Economic Society, vol. 8(2), pages 159-175, July.
    26. Kaddour Hadri, 2000. "Testing for stationarity in heterogeneous panel data," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 148-161.
    27. Jushan Bai & Pierre Perron, 2003. "Computation and analysis of multiple structural change models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(1), pages 1-22.
    28. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    29. 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.
    30. Le, Thai-Ha & Chang, Youngho & Park, Donghyun, 2017. "Energy demand convergence in APEC: An empirical analysis," Energy Economics, Elsevier, vol. 65(C), pages 32-41.
    31. repec:ipg:wpaper:2014-589 is not listed on IDEAS
    32. Muhammad Shahbaz & Aviral Kumar Tiwari & Saleheen Khan, 2016. "Is energy consumption per capita stationary? Evidence from first and second generation panel unit root tests," Economics Bulletin, AccessEcon, vol. 36(3), pages 1656-1669.
    33. Apergis, Nicholas & Payne, James E., 2014. "The oil curse, institutional quality, and growth in MENA countries: Evidence from time-varying cointegration," Energy Economics, Elsevier, vol. 46(C), pages 1-9.
    34. Robert J. Barro & Xavier Sala-i-Martin, 1991. "Convergence across States and Regions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(1), pages 107-182.
    35. 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.
    36. Mohammadi, Hassan & Ram, Rati, 2012. "Cross-country convergence in energy and electricity consumption, 1971–2007," Energy Economics, Elsevier, vol. 34(6), pages 1882-1887.
    37. Hsu, Yi-Chung & Lee, Chien-Chiang & Lee, Chi-Chuan, 2008. "Revisited: Are shocks to energy consumption permanent or temporary? New evidence from a panel SURADF approach," Energy Economics, Elsevier, vol. 30(5), pages 2314-2330, September.
    38. Bhattacharya, Mita & Inekwe, John N. & Sadorsky, Perry, 2020. "Convergence of energy productivity in Australian states and territories: Determinants and forecasts," Energy Economics, Elsevier, vol. 85(C).
    39. Meng, Ming & Payne, James E. & Lee, Junsoo, 2013. "Convergence in per capita energy use among OECD countries," Energy Economics, Elsevier, vol. 36(C), pages 536-545.
    40. Meng Ming & Lee Junsoo & Payne James E., 2017. "RALS-LM unit root test with trend breaks and non-normal errors: application to the Prebisch-Singer hypothesis," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 21(1), pages 31-45, February.
    41. 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.
    42. Kahia, Montassar & Aïssa, Mohamed Safouane Ben & Lanouar, Charfeddine, 2017. "Renewable and non-renewable energy use - economic growth nexus: The case of MENA Net Oil Importing Countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 127-140.
    43. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    44. Mishra, Vinod & Sharma, Susan & Smyth, Russell, 2009. "Are fluctuations in energy consumption per capita transitory? Evidence from a panel of Pacific Island countries," Energy Policy, Elsevier, vol. 37(6), pages 2318-2326, June.
    45. Demir, Caner & Cergibozan, Raif, 2020. "Does alternative energy usage converge across Oecd countries?," Renewable Energy, Elsevier, vol. 146(C), pages 559-567.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chen, Jinyu & Luo, Qian & Sun, Xin & Zhang, Zitao & Dong, Xuesong, 2023. "The impact of renewable energy consumption on lithium trade patterns: An industrial chain perspective," Resources Policy, Elsevier, vol. 85(PA).
    2. Nidhaleddine Ben Cheikh & Younes Ben Zaied, 2021. "A new look at carbon dioxide emissions in MENA countries," Climatic Change, Springer, vol. 166(3), pages 1-22, June.
    3. Kassouri, Yacouba, 2022. "Boom-bust cycles in oil consumption: The role of explosive bubbles and asymmetric adjustments," Energy Economics, Elsevier, vol. 111(C).
    4. He, Weijun & Chen, Hao, 2022. "Will China's provincial per capita energy consumption converge to a common level over 1990–2017? Evidence from a club convergence approach," Energy, Elsevier, vol. 249(C).
    5. Salman, Muhammad & Zha, Donglan & Wang, Guimei, 2022. "Assessment of energy poverty convergence: A global analysis," Energy, Elsevier, vol. 255(C).
    6. Yubin Zheng & Wei Wei & Muntasir Murshed & Samiha Khan & Haider Mahmood & Narasingha Das, 2023. "Repercussions of Hydroelectricity use on Carbon Emissions in Bangladesh: Evidence using Novel Fourier-Bootstrapped ARDL and Fourier-Gradual Shift Causality analyses," Evaluation Review, , vol. 47(6), pages 1025-1065, December.
    7. Nazlioglu, Saban & Kassouri, Yacouba & Kucukkaplan, Ilhan & Soytas, Ugur, 2022. "Convergence of oil consumption: A historical perspective with new concepts," Energy Policy, Elsevier, vol. 168(C).
    8. Najia Saqib, 2021. "Energy Consumption and Economic Growth: Empirical Evidence from MENA Region," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 191-197.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lei Pan & Svetlana Maslyuk-Escobedo, 2019. "Stochastic convergence in per capita energy consumption and its catch-up rate: evidence from 26 African countries," Applied Economics, Taylor & Francis Journals, vol. 51(24), pages 2566-2590, May.
    2. Lei Pan & Svetlana Maslyuk-Escobedo, 2017. "Stochastic convergence in per capita energy consumption and its catch-up rate: Evidence from 26 African countries," Monash Economics Working Papers 16-17, Monash University, Department of Economics.
    3. Akram, Vaseem & Rath, Badri Narayan & Sahoo, Pradipta Kumar, 2020. "Stochastic conditional convergence in per capita energy consumption in India," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 224-240.
    4. Meng, Ming & Payne, James E. & Lee, Junsoo, 2013. "Convergence in per capita energy use among OECD countries," Energy Economics, Elsevier, vol. 36(C), pages 536-545.
    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. 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.
    7. Kassouri, Yacouba, 2022. "Boom-bust cycles in oil consumption: The role of explosive bubbles and asymmetric adjustments," Energy Economics, Elsevier, vol. 111(C).
    8. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
    9. Smyth, Russell, 2013. "Are fluctuations in energy variables permanent or transitory? A survey of the literature on the integration properties of energy consumption and production," Applied Energy, Elsevier, vol. 104(C), pages 371-378.
    10. Bello, Mufutau Opeyemi & Ch'ng, Kean Siang, 2022. "Convergence in energy intensity of GDP: Evidence from West African countries," Energy, Elsevier, vol. 254(PA).
    11. 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.
    12. 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).
    13. Borozan, Djula, 2017. "Testing for convergence in electricity consumption across Croatian regions at the consumer's sectoral level," Energy Policy, Elsevier, vol. 102(C), pages 145-153.
    14. Ivanovski, Kris & Awaworyi Churchill, Sefa & Smyth, Russell, 2018. "A club convergence analysis of per capita energy consumption across Australian regions and sectors," Energy Economics, Elsevier, vol. 76(C), pages 519-531.
    15. Erdogan, Sinan & Akalin, Guray & Oypan, Oguz, 2020. "Are shocks to disaggregated energy consumption transitory or permanent in Turkey? New evidence from fourier panel KPSS test," Energy, Elsevier, vol. 197(C).
    16. Lean, Hooi Hooi & Smyth, Russell, 2013. "Will policies to promote renewable electricity generation be effective? Evidence from panel stationarity and unit root tests for 115 countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 371-379.
    17. 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).
    18. Akram, Vaseem & Sahoo, Pradipta Kumar & Jangam, Bhushan Praveen, 2019. "Do shocks to electricity consumption revert to its equilibrium? Evidence from Indian states," Utilities Policy, Elsevier, vol. 61(C).
    19. repec:ipg:wpaper:2014-589 is not listed on IDEAS
    20. Josep Carrion-i-Silvestre & Vicente German-Soto, 2009. "Panel data stochastic convergence analysis of the Mexican regions," Empirical Economics, Springer, vol. 37(2), pages 303-327, October.
    21. Muhammad Shahbaz & Aviral Kumar Tiwari & Saleheen Khan, 2016. "Is energy consumption per capita stationary? Evidence from first and second generation panel unit root tests," Economics Bulletin, AccessEcon, vol. 36(3), pages 1656-1669.

    More about this item

    Keywords

    Stochastic convergence; Catch-up rate; Energy consumption; MENA Countries;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • N52 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - U.S.; Canada: 1913-
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:150:y:2021:i:c:s0301421521000203. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.