Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model

This study examines the determinants of renewable energy consumption per capita for a panel of seven Central American countries over the period 1980 to 2010. Specifically, we find that a long-run cointegrated relationship exists between renewable energy consumption per capita, real GDP per capita, c...

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Main Authors: Apergis, Nicholas, Payne, James
Format: Journal Article
Published: Elsevier 2013
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/29224
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author Apergis, Nicholas
Payne, James
author_facet Apergis, Nicholas
Payne, James
author_sort Apergis, Nicholas
building Curtin Institutional Repository
collection Online Access
description This study examines the determinants of renewable energy consumption per capita for a panel of seven Central American countries over the period 1980 to 2010. Specifically, we find that a long-run cointegrated relationship exists between renewable energy consumption per capita, real GDP per capita, carbon emissions per capita, real coal prices, and real oil prices with the respective coefficients positive and statistically significant. A structural break in the cointegrating relationship appears in 2002 which coincides with the establishment of the Energy and Environment Partnership with Central America initiative to expand the use of renewable energy sources. Recognizing the regime shift in 2002, we estimate a nonlinear panel smooth transition vector error correction model to show that for the post-2002 period, the influence of renewable energy consumption per capita uponreal coal and oil prices strengthened relative to the pre-2002 period as well as a greater sensitivity of real GDP per capita to carbon emissions per capita.
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spelling curtin-20.500.11937-292242017-09-13T15:55:38Z Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model Apergis, Nicholas Payne, James Renewable energy Emissions Structural breaks Central America Fossil fuel prices This study examines the determinants of renewable energy consumption per capita for a panel of seven Central American countries over the period 1980 to 2010. Specifically, we find that a long-run cointegrated relationship exists between renewable energy consumption per capita, real GDP per capita, carbon emissions per capita, real coal prices, and real oil prices with the respective coefficients positive and statistically significant. A structural break in the cointegrating relationship appears in 2002 which coincides with the establishment of the Energy and Environment Partnership with Central America initiative to expand the use of renewable energy sources. Recognizing the regime shift in 2002, we estimate a nonlinear panel smooth transition vector error correction model to show that for the post-2002 period, the influence of renewable energy consumption per capita uponreal coal and oil prices strengthened relative to the pre-2002 period as well as a greater sensitivity of real GDP per capita to carbon emissions per capita. 2013 Journal Article http://hdl.handle.net/20.500.11937/29224 10.1016/j.eneco.2014.01.003 Elsevier restricted
spellingShingle Renewable energy
Emissions
Structural breaks
Central America
Fossil fuel prices
Apergis, Nicholas
Payne, James
Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title_full Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title_fullStr Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title_full_unstemmed Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title_short Renewable Energy, Output, CO2 Emissions, and Fossil Fuel Prices in Central America: Evidence From a Nonlinear Panel Smooth Transition Vector Error Correction Model
title_sort renewable energy, output, co2 emissions, and fossil fuel prices in central america: evidence from a nonlinear panel smooth transition vector error correction model
topic Renewable energy
Emissions
Structural breaks
Central America
Fossil fuel prices
url http://hdl.handle.net/20.500.11937/29224