Is per capita energy use stationary? Panel data evidence for the EMU countries

The aim of the study is to examine the stationary properties of per capita energy use in the 19 Eurozone member countries by using yearly data in the 1960–2013 period. First and second generation of panel unit root tests are applied. Empirical findings show mixed results, since the evidence favors the panel stationarity of energy use per capita in all groups of countries for the specification with the constant only; on the contrary, in the specification with constant and trend, the null hypothesis that all series are non-stationary cannot be rejected. Therefore, policymakers should be cautious, paying attention to the energy use series’ properties, as different results conduct to opposite policy implications.

[1]  Russell Smyth,et al.  Are oil shocks permanent or temporary? panel data evidence from crude oil and NGL production in 60 countries , 2008 .

[2]  G. Maddala,et al.  A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test , 1999 .

[3]  M. Friedman.  The Use of Ranks to Avoid the Assumption of Normality Implicit in the Analysis of Variance , 1937 .

[4]  E. Dumitrescu,et al.  Testing for Granger Non-causality in Heterogeneous Panels , 2012 .

[5]  M. Pesaran.  General diagnostic tests for cross-sectional dependence in panels , 2004, Empirical Economics.

[6]  Mahmoud A. Al-Iriani.  Energy-GDP relationship revisited: An example from GCC countries using panel causality , 2006 .

[7]  Chien-Chiang Lee,et al.  Energy consumption and GDP in developing countries: A cointegrated panel analysis , 2005 .

[8]  A. Belke,et al.  Energy consumption and economic growth: New insights into the cointegration relationship , 2011 .

[9]  M. Pesaran,et al.  Testing for unit roots in heterogeneous panels , 2003 .

[10]  Jeffrey M. Woodbridge.  Econometric Analysis of Cross Section and Panel Data , 2002 .

[11]  Nicholas Apergis,et al.  Energy consumption and economic growth: Evidence from the Commonwealth of Independent States , 2009 .

[12]  Russell Smyth,et al.  Energy consumption and real GDP in G7 countries: New evidence from panel cointegration with structural breaks , 2008 .

[13]  Mohsen Mehrara,et al.  Energy consumption and economic growth: The case of oil exporting countries , 2007 .

[14]  A. Tiwari,et al.  Is energy consumption per capita stationary? Evidence from first and second generation panel unit root tests , 2012 .

[15]  Cosimo Magazzino.  Energy consumption and GDP in Italy: cointegration and causality analysis , 2015, Environment, Development and Sustainability.

[16]  M. Pesaran.  A Simple Panel Unit Root Test in the Presence of Cross Section Dependence , 2003 .

[17]  Edward W. Frees,et al.  Longitudinal and Panel Data , 2004 .

[18]  Cosimo Magazzino.  Electricity demand, GDP and employment: evidence from Italy , 2013 .

[19]  Chi-Chuan Lee,et al.  Revisited : Are shocks to energy consumption permanent or temporary? New evidence from a panel SURADF approach , 2008 .

[20]  R. Mahadevan,et al.  Energy consumption, economic growth and prices: A reassessment using panel VECM for developed and developing countries , 2007 .

[21]  Chien-Chiang Lee,et al.  A Panel Data Analysis of the Demand for Total Energy and Electricity in OECD Countries , 2010 .

[22]  Pei-Fen Chen,et al.  Is energy consumption per capita broken stationary? New evidence from regional-based panels , 2007 .

[23]  Stephan Popp,et al.  The energy consumption - real GDP nexus revisited : empirical evidence from 93 countries , 2012 .

[24]  Alper Aslan,et al.  Is per capita electricity consumption stationary? Time series evidence from OECD countries , 2012 .

[25]  Chun-Ping Chang,et al.  Energy consumption and GDP revisited: A panel analysis of developed and developing countries , 2007 .

[26]  Alper Aslan,et al.  Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries , 2010 .

[27]  Cheng Hsiao,et al.  Analysis of Panel Data , 1987 .

[28]  M. Pesaran.  Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure , 2004, SSRN Electronic Journal.

[29]  Chien‐Chiang Lee,et al.  Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data , 2008 .

[30]  F. Moscone,et al.  A Review and Comparison of Tests of Cross-Section Independence in Panels , 2009 .

[31]  Nicholas Apergis,et al.  Energy consumption and economic growth in Central America: Evidence from a panel cointegration and error correction model , 2009 .

[32]  Chi-Chung Chen,et al.  The relationship between GDP and electricity consumption in 10 Asian countries , 2007 .

[33]  Russell Smyth,et al.  Are shocks to energy consumption permanent or temporary? Evidence from 182 countries , 2007 .

[34]  Ronald D. Ripple,et al.  Household energy consumption versus income and relative standard of living: A panel approach , 2007 .

[35]  F. Teal,et al.  Econometrics for Grumblers: A New Look at the Literature on Cross-Country Growth Empirics , 2011 .

[36]  Vinod Mishra,et al.  Are fluctuations in energy consumption per capita transitory? Evidence from a panel of Pacific Island countries , 2009 .

[37]  Chin W. Yang,et al.  Causal Relationship between Energy Consumption and GDP Growth Revisited: A Dynamic Panel Data Approach , 2008 .

[38]  Cosimo Magazzino.  On the Relationship between Disaggregated Energy Production and GDP in Italy , 2012 .

[39]  Pei-Fen Chen,et al.  Energy-income causality in OECD countries revisited : The key role of capital stock , 2008 .

[40]  Paolo Agnolucci,et al.  Industrial energy intensities in the UK: is there a deterministic or stochastic difference among sectors? , 2011 .

[41]  A. Belke,et al.  Energy Consumption and Economic Growth - New Insights into the Cointegration Relationship , 2010 .