Energy consumption and economic growth: Evidence from the Commonwealth of Independent States

This study examines the relationship between energy consumption and economic growth for eleven countries of the Commonwealth of Independent States over the period 1991–2005 within a multivariate panel data framework. Based on (Pedroni, 1999) and (Pedroni, 2004) heterogeneous panel cointegration test and corresponding error correction model, cointegration is present between real GDP, energy consumption, real gross fixed capital formation, and labor force with the respective coefficients positive and statistically significant. The results of the error correction model reveal the presence of unidirectional causality from energy consumption to economic growth in the short-run while bidirectional causality between energy consumption and economic growth in the long-run. Thus, the results lend support for the feedback hypothesis associated with the relationship between energy consumption and economic growth.     

Energy consumption and economic growth in the USA: Evidence from renewable energy

Recent debates about renewable energy consumption manifest two main expectations. Firstly, renewable energy consumption should contribute to economic growth and secondly, it should not cause damage on environment. This study focuses on the first issue by applying Toda–Yamamoto procedure and bootstrap-corrected causality test for the US since empirical literature criticizes the Toda–Yamamoto test which bases on asymptotic distribution. The models consist of real GDP, employment, investment and kinds of renewable energy consumption. Only one causal relationship was found from biomass-waste-derived energy consumption to real GDP. No causal relationship was found between real GDP and all of the other renewable energy kinds—total renewable energy consumption, geothermal energy consumption, hydro-electric energy consumption, biomass energy consumption and biomass-wood-derived energy consumption. That is using of energy from waste cause not only solving the dumping problems but also it contributes to real GDP. For policy purpose, the results of this study suggest that countries should concentrate on energy producing from waste as an alternative energy resource.     

Energy prices,volatility, and the stock market: Evidence from the Eurozone

This paper constitutes a first analysis on stock returns of energy corporations from the Eurozone. It focuses on the relationship between energy market developments and the pricing of European energy stocks. According to our results, oil price hikes negatively impact on stock returns of European utilities. However, they lead to an appreciation of oil and gas stocks. Interestingly, forecastable oil market volatility negatively affects European oil and gas stocks, implying profit opportunities for strategic investors. In contrast, the gas market does not play a role for the pricing of Eurozone energy stocks. Coal price developments affect the stock returns of European utilities. However, this effect is small compared to oil price impacts, although oil is barely used for electricity generation in Europe. This suggests that for the European stock market, the oil price is the main indicator for energy price developments as a whole.     

Energy deprivation dynamics and regulatory reforms in Europe: Evidence from household panel data

The typical ingredients of energy reforms in the European Union (EU) in the 1990s were full or partial privatization, vertical disintegration and liberalization. This paper analyses the effects of energy reforms on the probability of households experiencing deprivation, defined as difficulty in paying the bills. We use two sets of micro-data. First, the European Community Household Panel (ECHP), a large EU survey, offers evidence on people who report having been unable to pay scheduled utility bills. We consider seven European countries: Denmark, Belgium, France, Ireland, Italy, the Netherlands and Spain, and eight ECHP waves (1994–2001), with around 28,000 observations. Second, we also use micro-data from the European Statistics on Income and Living Conditions survey (EU-SILC) 2004–2005, with around 84,000 observations. The countries included are Belgium, France, Ireland, Italy, Spain, Austria, Finland, Luxembourg, Norway and Sweden. As indicators of regulatory reforms in the same countries and years we use ECTR (formerly REGREF), a database provided by the OECD. In both samples we find evidence that privatization increases the probability of households experiencing deprivation. Vertical disintegration has a similar effect and also increases the persistence in the status of household deprivation. Liberalization has no statistically significant effect. We discuss possible interpretations of these findings.     

Energy consumption and economic growth: Evidence from China at both aggregated and disaggregated levels

Using a neo-classical aggregate production model where capital, labor and energy are treated as separate inputs, this paper tests for the existence and direction of causality between output growth and energy use in China at both aggregated total energy and disaggregated levels as coal, oil and electricity consumption. Using the Johansen cointegration technique, the empirical findings indicate that there exists long-run cointegration among output, labor, capital and energy use in China at both aggregated and all three disaggregated levels. Then using a VEC specification, the short-run dynamics of the interested variables are tested, indicating that there exists Granger causality running from electricity and oil consumption to GDP, but does not exist Granger causality running from coal and total energy consumption to GDP. On the other hand, short-run Granger causality exists from GDP to total energy, coal and oil consumption, but does not exist from GDP to electricity consumption. We thus propose policy suggestions to solve the energy and sustainable development dilemma in China as: enhancing energy supply security and guaranteeing energy supply, especially in the short run to provide adequate electric power supply and set up national strategic oil reserve; enhancing energy efficiency to save energy; diversifying energy sources, energetically exploiting renewable energy and drawing out corresponding policies and measures; and finally in the long run, transforming development pattern and cut reliance on resource- and energy-dependent industries.     

Energy sector of the Russian Far East: Current status and scenarios for the future

This article describes the Russian Far East's energy sector, stressing its limited energy exports, and use of separate electricity and heating grids to geographically dispersed population centers with various supply patterns distributed across a vast territory. One key strategic trend has been to strengthen the potential of the region as an energy supplier for the countries of Northeast Asia. This underlies the framework used to develop three energy scenarios of the Russian Far East's energy future through 2030: Reference, National Alternative and Regional Alternative. While the Regional Alternative case has much greater total costs for implementation, yields almost the same amount of emissions as the BAU case, and requires greater governmental efforts to bring it to reality, it looks preferable for the RFE as a whole because it has a well-balanced primary energy consumption mix, lower energy and ecology/GDP indices, and a lower fraction of energy imports; offers greater diversity of energy supply; and provides better local energy service. The authors would like to thank Boris Saneev, Alexander Sokolov, Alexander Izhbuldin from the Institute of Energy Systems, Irkutsk; Julia Savelieva from Far Eastern Coal Research; and Alla Filatova from Far Eastern Power Engineering Institute for providing technical information, and expertise.     

Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries

This paper uses the panel data of energy consumption (EC) and economic growth (GDP) for 51 countries from 1971 to 2005. These countries are divided into three groups: low income group, lower middle income group and upper middle income group countries. Firstly, a relationship between energy consumption and economic growth is investigated by employing Pedroni (1999) panel cointegration method. Secondly, panel causality test is applied to investigate the way of causality between the energy consumption and economic growth. Finally, we test whether there is a strong or weak relationship between these variables by using Pedroni (2001) method. The empirical results of this study are as follows: i) Energy consumption and GDP are cointegrated for all three income group countries. ii) The panel causality test results reveal that there is long-run Granger causality running from GDP to EC for low income countries and there is bidirectional causality between EC and GDP for middle income countries. iii) The estimated cointegration factor, β, is not close to 1. In other words, no strong relation is found between energy consumption and economic growth for all income groups considered in this study. The findings of this study have important policy implications and it shows that this issue still deserves further attention in future research.     

Energy from the western states of the USA: Conflicts and constraints

Large-scale energy resource development in the western states will almost certainly be required if the USA is to increase its domestic energy production significantly. Such development will create several problems, including conflicts over water use and quality, air quality, growth management and housing, and land use. In this article the authors discuss each of these issues and the kinds of trade-off which can be expected if certain policies are chosen. Although there are several promising strategies for realizing the benefits of development while minimizing environmental and socioeconomic costs, their success is likely to be limited by serious institutional constraints. These constraints ultimately block much energy resource development in the western states.     

Living in cold homes after heating improvements: Evidence from Warm-Front,England’s Home Energy Efficiency Scheme

ObjectiveTo investigate explanatory factors for persistent cold temperatures in homes which have received heating improvements.DesignAnalysis of data from a national survey of dwellings and households (in England occupied by low-income residents) that had received heating improvements or repairs under the Warm Front Scheme.MethodsOver the winters of 2001–02 and 2002–03, householders recorded living room and main bedroom temperatures in a diary. Entries were examined for 888 households, which had received high level heating interventions. Two hundred and twenty-two households were identified as occupying cold homes, with mean bedroom temperature below 16 °C or mean living room temperatures below 18 °C. Binary logistic regression was used to model dwelling and household features and then occupants’ behaviour and attitudes in the ‘cold homes’ sub-set compared with the remainder of the high intervention group. Seventy-nine supplementary, structured telephone interviews explored reasons given for lower temperatures. Using graphical and tabular methods, householders preferring cooler homes were distinguished from those who felt constrained in some way.ResultsCold homes predominate in pre-1930 properties where the householder remains dissatisfied with the heating system despite major improvements funded by Warm Front. Residents of cold homes are less likely to have long-standing illness or disability, but more likely to experience anxiety or depression. A small sample of telephone interviews reveals those preferring lower temperatures for health or other reasons, report less anxiety and depression than those with limited control over their home environment. Their ‘thermal resistance’ to higher temperatures challenges orthodox definitions of comfort and fuel poverty.     

从企业节能降耗谈能源计量

企业要节能降耗必须对能源进行量化管理,量化管理的手段就是计量,只有加强能源计量的管理,把能源计量工作做扎实做到位,能源数据真实可靠,才有依据制定节能目标,才能搞好节能降耗。为了指导搞好能源计量管理工作,国家质检总局和国家标准化委员会2006年联合发布GB17167-2006《用能单位能源计量器具配备和管理通则》(以下简称《通则》),对各用能单位,尤其是用能企业进行了明确的指导,且部分条款作为强制性条款;同时2006年国务院也发布了《国务院关于加强节能工作的决定》。由此可见,能源计量非常重要,是企业节能降耗的重要基础工作,是企业节能降耗的保证。     

Oil Consumption and Economic Growth: Evidence from Korea

This article investigates the short- and long-run causality issues between oil consumption and economic growth in Korea by applying modern time-series techniques. It employs annual data covering the period 1968–2002. Tests for unit roots, cointegration, and a Granger-causality based on error-correction model are presented. The results show that bidirectional causality runs from oil consumption to economic growth in Korea. This means that an increase in oil consumption directly affects economic growth and that economic growth also stimulates further oil consumption.     

Technology and petroleum exhaustion: Evidence from two mega-oilfields

In this paper, we use results from the Hotelling model of non-renewable resources to examine the mainstream view among economists that improvements in recovery technology can offset declines in petroleum reserves. We present empirical evidence from two well-documented mega-oilfields: the Forties in the North Sea and the Yates in West Texas. Patterns of depletion in these two fields suggest that technology temporarily increases the rates of production at the expense of more pronounced rates of depletion in later years—in line with Hotelling's predictions. Insofar as our results are generalizable, they call into question the view of most economists that technology can mitigate absolute resource scarcity. This raises concerns about the capacity of current mega-fields to meet future oil demand.     

Industrial relocation and energy consumption: Evidence from China

With economic development and the change of industrial structure, industrial relocation is an inevitable trend. In the process of industrial relocation, environmental externality and social cost could occur due to market failure and government failure. Little attention has been paid to this issue. In this paper, we address it with a theoretical analysis and an empirical investigation on the relationship between China's industrial relocation in the early 1990s and energy consumption which is the primary source of CO₂ emission, an environmental externality that causes increasing concerns. The macro-policy analysis suggests that there would be a positive link between China's industrial relocation in the early 1990s and energy saving (and environmental externalities reduction). Using fixed-effect regression model and simulation method, we provide an empirical support to this argument. In order to further reduce environmental externalities and social cost in the process of industrial relocation, we provide policy suggestions as follows: First, strengthen the evaluation of environmental benefits/costs; Second, pay more attention to the coordinated social-economic development; Third, avoid long-lived investment in high-carbon infrastructure in areas with industries moved in; Fourth, address employment issue in the areas with industries moved out.     

Electricity consumption and economic growth: Evidence from Turkey

This study investigates the causal relationship between electricity consumption and real GDP in Turkey during the period of 1950–2000. Both of the series were found to be a stationary process around a structural break by the Zivot and Andrews test. Thus, two different methodologies have been employed to test the Granger non-causality: the Dolado–Lütkepohl test using the VARs in levels, and the standard Granger causality test using the detrended data. Both tests have yielded a strong evidence for unidirectional causality running from the electricity consumption to the income. This implies that the supply of electricity is vitally important to meet the growing electricity consumption, hence to sustain the economic growth in Turkey.     

Regime-switching stochastic volatility: Evidence from the crude oil market

This paper incorporates regime-switching into the stochastic volatility (SV) framework in an attempt to explain the behavior of crude oil prices in order to forecast their volatility. More specifically, it models the volatility of oil return as a stochastic volatility process whose mean is subject to shifts in regime. The shift is governed by a two-state first-order Markov process. The Bayesian Markov Chain Monte Carlo method is used to estimate the models. The main findings are: first, there is clear evidence of regime-switching in the oil market. Ignoring it will lead to a false impression that the volatility is highly persistent and therefore highly predictable. Second, incorporating regime-switching into the SV framework significantly enhances the forecasting power of the SV model. Third, the regime-switching stochastic volatility model does a good job in capturing major events affecting the oil market.     

能源技术视角下的能源安全问题探讨

传统能源安全观念侧重于能源供应量有持续充足的保障,伴随能源技术发展,传统以化石能源为基础的大规模生产、远距离运输的能源体系正逐步向新的能源体系过渡,在这个过程中,能源技术对能源安全的影响愈发重要,也将影响着新的世界能源格局的形成。本文阐述了能源技术视角对保障能源安全的重要意义,并对能源技术发展趋势及我国能源技术现状进行了分析评价。提出了能源安全战略应将能源技术作为核心内容,重视能源体系转换中出现的新的安全问题;加强能源领域技术创新,提升关键技术自主化水平,突破前沿性技术;坚持能源技术产业目标导向,加强创新性技术的应用等政策建议。     

Wind generation and zonal-market price divergence: Evidence from Texas

The extant literature on wind generation and wholesale electricity spot prices says little about how wind generation may affect any price differences between two inter-connected sub-markets. Using extensive data from the four ERCOT zones of Texas, this paper develops a two-stage model to attack the issue. The first stage is an ordered-logit regression to identify and quantify, for example, the impact of wind generation in the West zone on the estimated probability of a positive or negative price difference between the North and West zones. The second stage is a log-linear regression model that identifies and quantifies the estimated impact of wind generation on the sizes of those positive and negative price differences. It is shown that high wind generation and low load in the wind-rich ERCOT West zone tend to lead to congestion and zonal price differences, that those differences are time-dependent, and that other factors such as movements in nuclear generation and natural-gas prices, as well as fluctuating non-West zone loads, also play a role. The results have broad implications for energy policy makers that extend well beyond the borders of Texas and, indeed, those of the United States.     

Quality uncertainty and the market for renewable energy: Evidence from German consumers

Consumers can choose from a wide range of electricity supply contracts, including green power options. Electricity produced from renewable energy involves information asymmetries. With a sample of more than 2,000 German electricity consumers, we tested the proposition of a “lemon market” for renewable energy in a discrete choice experiment. Specifically, we found that, compared to investor-owned firms, additional willingness-to-pay for renewable energy is approximately double when offered by cooperatives or municipally-owned electricity utilities. Consumers who are experienced with switching suppliers have an additional willingness-to-pay of one Eurocent per kilowatt hour for cooperatives and two Eurocents for public enterprises. The results demonstrate that organizational transformation in dynamically-changing electricity markets is not only driven by political initiatives but also by consumers' choices on the market. Public policy may reduce information asymmetries by promoting government labeling of green energy products.