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

Abstract

This paper investigates the unit root properties of electricity consumption per capita for the 67 developed and developing countries for 1971-2007 period. To examine the stationary properties of electricity consumption per capita, we have adopted 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 in the study. 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.

Are fluctuations in coal, oil and natural gas consumption permanent or transitory? Evidence from OECD countries

“…The non-stationary properties of energy consumption and electricity consumption were confirmed in some studies namely Narayan and Smyth (2005); Narayan and Smyth (2007); Narayan and Popp (2012); Barros et al (2012); Demir and Gozgor (2018) and Magazzino (2017a). The stationary property of energy consumption was confirmed by Ozturk and Aslan (2011); Kum (2012); Meng et al (2012); Ozcan (2013); Bolat et al (2013); Kula et al (2012); Shahbaz et al (2013); Lean and Smyth (2014); Khraief et al (2016). Moreover, mixed results were found by Chen and Lee (2007) 2016; Wang et al (2016); and Magazzino (2017b).…”

The energy-growth nexus in Thailand: Does trade openness boost up energy consumption?

“…In pair-wise correlation analysis, we find that energy consumption and trade openness are positively correlated with economic growth. Trade openness has positive correlation for energy consumption.Testing the unit root properties of variables is necessary condition before applying any standard cointegration approach (Shahbaz et al[80,81]). For this purpose, we have used Ng-Perron unit root test to check the stationarity of time series data in logarithmic form.…”

Are fluctuations in oil consumption permanent or transitory? Evidence from linear and nonlinear unit root tests

“…Kula et al (2012) and Shahbaz et al (2013) provided evidences of stationarity on electricity consumption. Apergis et al (2010a) supported the stationarity of coal consumption while provided evidence of persistence on coal consumption.…”