 Are fluctuations in Japan’s consumption of non-fossil energy permanent or transitory?Yuan Wang, Li Li, Jumpei Kubota, Xiaodong Zhu and Genfa Lu Applied Energy, 2016, vol. 169, issue C, 187-196 Abstract: This is the first empirical study to use annual data to probe the stationary property of non-fossil energy consumption in Japan. To understand the behavior of non-fossil energy from different sources, we adopt the univariate and panel Lagrange Multiplier unit root test, which can accommodate multiple structural breaks in data-generating processes, together with the Fourier-type Lagrange Multiplier test under a non-linear framework. Our empirical findings emphasize a difference between the stationary behavior of nuclear energy and renewable energy. Nuclear energy contains a unit root, which implies that random shocks to nuclear energy consumption, defined as regulatory change, may result in a permanent deviation from original target levels. However, renewable energy consumption series are found to be stationary, which implies that extant energy polices for such consumption could have a transitory effect. Thus, an innovation policy using effective and flexible incentive mechanisms needs to be adopted to enlarge renewable energy deployment. Keywords: Non-fossil energy consumption; Structural break; Unit root (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:appene:v:169:y:2016:i:c:p:187-196 Ordering information: This journal article can be ordered from DOI: 10.1016/j.apenergy.2016.02.009 Access Statistics for this article Applied Energy is currently edited by J. Yan More articles in Applied Energy from Elsevier |
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