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Are fluctuations in electricity consumption per capita transitory? Evidence from developed and developing economies

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  • Shahbaz, Muhammad
  • Kumar Tiwari, Aviral
  • Ozturk, Ilhan
  • Farooq, Abdul

Abstract

This paper investigates the unit root properties of electricity consumption per capita of 67 developed and developing countries for the period 1971–2010. To examine the stationary properties of electricity consumption per capita, we have adopted Lee and Strazicich (2003, 2004) test of unit root that allows us to test for at most two endogenous breaks and uses the Lagrange Multiplier (LM) test statistics. Results show that 65 country series reject the unit root null hypothesis except for 2 country series. Thus, our empirical findings provide significant evidence that electricity consumption per capita is stationary in almost all countries considered. The stationarity of electricity consumption per capita indicates that it should be possible for the series to forecast future movements in the energy consumption based on the past behaviors of the series.

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  • Shahbaz, Muhammad & Kumar Tiwari, Aviral & Ozturk, Ilhan & Farooq, Abdul, 2013. "Are fluctuations in electricity consumption per capita transitory? Evidence from developed and developing economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 551-554.
  • Handle: RePEc:eee:rensus:v:28:y:2013:i:c:p:551-554
    DOI: 10.1016/j.rser.2013.08.007
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    References listed on IDEAS

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    Cited by:

    1. Lin, Boqiang & Omoju, Oluwasola E. & Okonkwo, Jennifer U., 2015. "Impact of industrialisation on CO2 emissions in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1228-1239.
    2. Muhammad Shahbaz & Sakiru Adebola Solarin & Hrushikesh Mallick, 2015. "Are Fluctuations in Gas Consumption Per Capita Transitory? Evidence from LM Unit Root Test with Two Structural Breaks," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(4), pages 203-209, December.
    3. Kyophilavong, Phouphet & Shahbaz, Muhammad & Anwar, Sabeen & Masood, Sameen, 2015. "The energy-growth nexus in Thailand: Does trade openness boost up energy consumption?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 265-274.
    4. 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.
    5. 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.
    6. 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.
    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. Solarin, Sakiru Adebola & Lean, Hooi Hooi, 2016. "Are fluctuations in oil consumption permanent or transitory? Evidence from linear and nonlinear unit root tests," Energy Policy, Elsevier, vol. 88(C), pages 262-270.
    9. Tiwari, Aviral Kumar & Albulescu, Claudiu Tiberiu, 2016. "Renewable-to-total electricity consumption ratio: Estimating the permanent or transitory fluctuations based on flexible Fourier stationarity and unit root tests," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1409-1427.
    10. repec:ipg:wpaper:2014-589 is not listed on IDEAS
    11. Lau, Lin-Sea & Choong, Chee-Keong & Eng, Yoke-Kee, 2014. "Carbon dioxide emission, institutional quality, and economic growth: Empirical evidence in Malaysia," Renewable Energy, Elsevier, vol. 68(C), pages 276-281.
    12. 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.
    13. 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.
    14. Henry, Legena & Bridge, Jacqueline & Henderson, Mark & Keleher, Kevin & Barry, Megan & Goodwin, Geoff & Namugayi, Deborah & Morris, Marisha & Oaks, Benjamin & Dalrymple, Odesma & Shrake, Scott & Ota, , 2015. "Key factors around ocean-based power in the Caribbean region, via Trinidad and Tobago," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 160-175.

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    Keywords

    Electricity; Transitory; Permanent;

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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