Energy prices and CO2 emissions in the 1990s

Amano, Akihiro

doi:10.1016/0161-8938(90)90010-c

Cited by 12 publications

(7 citation statements)

References 2 publications

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“…Some of the previous literature has focused directly on the relationship between absolute energy prices and energy consumption, which can reveal a visible relationship between energy prices and consumption. Many studies support the notion that rising energy prices lead to reduced energy consumption (Amano 1990 ; Martinsen et al 2007 ; IMF 2013 ; Fei and Rasiah 2014 ; Li and Lin 2015 ). Some of these studies focus primarily on the channels through which energy prices influence energy consumption.…”

Section: Introductionmentioning

confidence: 94%

“…Moreover, excluding the general price level in examining energy prices not only may reflect the real variation in energy prices but also may consider the cost of price lever regulation and even the endurance of the economy’s price system, which is more instructive in practice. It is through this mechanism that Amano ( 1990 ) indicates that rising real energy prices may result in energy savings. In general, the inflation cost in this paper fundamentally includes two aspects: first, according to the analysis described above, inflation itself is a cost of pricing policy; second, inflation may result in many costs, such as shoe-leather costs, menu costs and tax distortions.…”

Section: Theoretical Framework and Model Constructionmentioning

confidence: 99%

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The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

Ding

Yin

et al. 2016

SpringerPlus

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Significant effort has been exerted on the study of economic variables such as absolute energy prices to understand energy consumption and economic growth. However, this approach ignores general inflation effects, whereby the prices of baskets of goods may rise or fall at different rates from those of energy prices. Thus, it may be the relative energy price, not the absolute energy price, that has most important effects on energy consumption. To test this hypothesis, we introduce a new explanatory variable, the domestic relative energy price, which we define as “the ratio of domestic energy prices to the general price level of an economy,” and we test the explanatory power of this new variable. Thus, this paper explores the relationship between relative energy prices and energy consumption in China from the perspective of inflation costs over the period from 1988 to 2012. The direct, regulatory and time-varying effects are captured using methods such as ridge regression and the state-space model. The direct impacts of relative energy prices on total energy consumption and intensity are −0.337 and −0.250, respectively; the effects of comprehensive regulation on energy consumption through the economic structure and the energy structure are −0.144 and −0.148, respectively; and the depressing and upward effects of rising and falling energy prices on energy consumption are 0.3520 and 0.3564, respectively. When economic growth and the energy price level were stable, inflation persisted; thus, rising energy prices benefitted both the economy and the environment. Our analysis is important for policy makers to establish effective energy-pricing policies that ensure both energy conservation and the stability of the pricing system.

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Section: Introductionmentioning

confidence: 94%

Section: Theoretical Framework and Model Constructionmentioning

confidence: 99%

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

Ding

Yin

et al. 2016

SpringerPlus

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“…We also found another line of CO 2 modeling literature (Salim and Rafiq 2012) and Blazquez et al (2017) found no important association between oil prices and CO 2 emissions. Subsequent energy demand channelizes the effect of oil prices on CO 2 emissions (Amano 1990;Martinsen, Krey, and Markewitz 2007;Fei and Rasiah 2014). Research by Zhang, Broadstock, et al (2014) analyzed the effect of energy prices on energy demand in different sectors and found that higher prices influence most transport sectors.…”

Section: Literature Review 21 Co 2 Emissions and Energy Pricesmentioning

confidence: 99%

Sectoral CO₂ emissions in China: asymmetric and time-varying analysis

Fatima

Karim

Meo

2020

Journal of Environmental Planning and Management

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Today, China is the second-largest, fastest-growing economy in the world. This study analyzes asymmetric and time-varying impact of world energy prices (including world energy prices index, world coal prices, world crude oil prices and world natural gas prices) on China's CO 2 emissions. We used a non-linear ARDL (NARDL) model and wavelet analysis using monthly data from 1992 to 2017. The results based on the NARDL estimate show that world energy prices have an asymmetric impact on CO 2 emissions. However, the results of wavelet pairwise correlation and wavelet-transform coherence suggest that the relationship between world energy prices and CO 2 emissions differs over time and across sectors (i.e. short-term, medium-term, long-term and very long-term). Evidence suggests that ignoring fundamental non-linearities can lead to misleading outcomes. Such empirical results are expected to have a high importance for the efficient design and implementation of world energy prices and Chinese environmental policies.

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“…The literature is also giving intrinsic attention to price relatives in energy consumption. There are growing number of scholars confirming the fact that rising absolute energy prices stifle energy consumption (Amano, 1990;Li and Lin, 2015) and relatively fewer scholars are arguing in favour of relative energy prices instead (He et al, 2016). As He et al (2016) pointed out, no area of price consideration should be taken lightly because this may ignore general inflation effects, whereby the prices of baskets of goods may rise or fall at different rates from those of energy prices.…”

Section: Rehman (2014) Examined the Relationship Between Energy Consumentioning

confidence: 99%

Energy Consumption and Inflation Dynamics in Nigeria: An ARDL Cointegration Approach

Bassey

Ekong

2019

Energy Economics Letters

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This paper investigated the dynamic relationship between energy consumption and inflation in Nigeria using time series data obtained for the period 1980 to 2017. Applying Autoregressive Distributed Lag (ADL) technique on the variables, the study found that Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK) and Natural gas were noninflationary in Nigeria both in consumption and prices over the period. Also, Automotive Gas Oil (AGO) consumption produces strong evidence of positive inflationary pressure but not in prices throughout the study period. Further, we found a strong causality link between natural gas consumption and inflation in Nigeria. We concluded that inflation in Nigeria is not majorly a demand-pull phenomenon, pulled by energy consumption. We provide both subjective and evidence-based reasons for the economic trend and recommend a bridge in the degrading systemic informality in the energy sector that will deliver real time effect of energy consumption-inflation proposition in Nigeria. Contribution/ Originality: This study documents that changes in Inflation in Nigeria is not necessarily a demand-pull phenomenon, pulled by energy consumption. Changes in inflation could be explained away from energy consumption, notably inflation expectation by the citizenry.

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Energy prices and CO2 emissions in the 1990s

Cited by 12 publications

References 2 publications

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

Sectoral CO₂ emissions in China: asymmetric and time-varying analysis

Energy Consumption and Inflation Dynamics in Nigeria: An ARDL Cointegration Approach

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Energy prices and CO2 emissions in the 1990s

Cited by 12 publications

References 2 publications

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

The impact of relative energy prices on industrial energy consumption in China: a consideration of inflation costs

Sectoral CO2 emissions in China: asymmetric and time-varying analysis

Energy Consumption and Inflation Dynamics in Nigeria: An ARDL Cointegration Approach

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Sectoral CO₂ emissions in China: asymmetric and time-varying analysis