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Stochastic convergence of disaggregated energy consumption per capita and its catch-up rate: An independent analysis of MENA net oil-exporting and importing countries

Anwar Saeed Ahmed Qahtan, Helian Xu and AL-Barakani Abdo

Energy Policy, 2021, vol. 150, issue C

Abstract: Investigating the stochastic convergence of energy consumption per capita and its catch-up rate is important for policies in energy demand and supply as well as environmental management, hence, the coming up of this paper with reference to the MENA oil-exporting and importing nations for the period of 1990–2016 using advances in unit root tests including the panel KPSS test with breaks; two-step LM test with breaks and Residual Augmented Least Squares-Lagrange multiplier (RALS-LM) test with breaks. The findings from the panel test revealed stochastic convergence in total, nonrenewable, and renewable energy consumption for all the panels in both groups except the catch-up rate panel of total energy consumption of the net oil-importing nations while the univariate tests in the MENA net oil-exporting nations uncovered stochastic convergence in total (54% of the sample), nonrenewable (54% of the sample), and renewable (70% of the sample) whereas, in the MENA net oil-importing nations, total (64% of the sample), non-renewable (55% of the sample), and renewable (73% of the sample). However, in the catch-up rate of the MENA net oil-importing nations, total (45% of the sample), nonrenewable (73% of the sample), and renewable (73% of the sample). Policy implications were made.

Keywords: Stochastic convergence; Catch-up rate; Energy consumption; MENA Countries (search for similar items in EconPapers)
JEL-codes: C20 C22 C40 N52 Q47 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:150:y:2021:i:c:s0301421521000203

DOI: 10.1016/j.enpol.2021.112151

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