Abstract
This article re-examines the persistence in natural gas consumption using an alternative methodology. We compare the results of traditional panel unit root tests with those provided by Bahmani-Oskooee et al., which allow for both sharp and smooth breaks. Our analysis uses data for the G7 countries over the 1965–2016 years. The empirical findings show that while traditional unit root tests with sharp breaks lean towards the non-stationarity of the series for all the G7 countries, modeling breaks in our unit root testing methodology can assert that natural gas consumption is non-stationary only for Canada, France, Italy, and USA. These results imply that, for the majority of our sample, energy demand management policies designed to shrink energy consumption will have temporary effects, as energy consumption will return to its trend path.
| Original language | English |
|---|---|
| Pages (from-to) | 111-120 |
| Number of pages | 10 |
| Journal | Natural Resources Forum |
| Volume | 43 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 May 2019 |
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Are shocks to natural gas consumption transitory or permanent? A more powerful panel unit root test on the G7 countries. / Cai, Yifei; Magazzino, Cosimo.
In: Natural Resources Forum, Vol. 43, No. 2, 01.05.2019, p. 111-120.Research output: Contribution to journal › Article
TY - JOUR
T1 - Are shocks to natural gas consumption transitory or permanent? A more powerful panel unit root test on the G7 countries
AU - Cai, Yifei
AU - Magazzino, Cosimo
PY - 2019/5/1
Y1 - 2019/5/1
N2 - This article re-examines the persistence in natural gas consumption using an alternative methodology. We compare the results of traditional panel unit root tests with those provided by Bahmani-Oskooee et al., which allow for both sharp and smooth breaks. Our analysis uses data for the G7 countries over the 1965–2016 years. The empirical findings show that while traditional unit root tests with sharp breaks lean towards the non-stationarity of the series for all the G7 countries, modeling breaks in our unit root testing methodology can assert that natural gas consumption is non-stationary only for Canada, France, Italy, and USA. These results imply that, for the majority of our sample, energy demand management policies designed to shrink energy consumption will have temporary effects, as energy consumption will return to its trend path.
AB - This article re-examines the persistence in natural gas consumption using an alternative methodology. We compare the results of traditional panel unit root tests with those provided by Bahmani-Oskooee et al., which allow for both sharp and smooth breaks. Our analysis uses data for the G7 countries over the 1965–2016 years. The empirical findings show that while traditional unit root tests with sharp breaks lean towards the non-stationarity of the series for all the G7 countries, modeling breaks in our unit root testing methodology can assert that natural gas consumption is non-stationary only for Canada, France, Italy, and USA. These results imply that, for the majority of our sample, energy demand management policies designed to shrink energy consumption will have temporary effects, as energy consumption will return to its trend path.
KW - G7 countries
KW - Natural gas consumption
KW - panel unit root
KW - structural breaks
UR - http://www.scopus.com/inward/record.url?scp=85063129809&partnerID=8YFLogxK
U2 - 10.1111/1477-8947.12169
DO - 10.1111/1477-8947.12169
M3 - Article
VL - 43
SP - 111
EP - 120
JO - Natural Resources Forum
JF - Natural Resources Forum
SN - 0165-0203
IS - 2
ER -