Are Shocks to Wood Fuel Production Permanent? Evidence from the EU

Vishal Chandr Jaunky and Robert Lundmark
Additional contact information
Vishal Chandr Jaunky: Economics Unit, Luleå University of Technology, SE-971 87 Luleå, Sweden
Robert Lundmark: Economics Unit, Luleå University of Technology, SE-971 87 Luleå, Sweden

Energies, 2015, vol. 8, issue 11, 1-11

Abstract: This paper investigates whether shocks (economic effects) to wood fuel production for 18 countries of the European Union (EU) over the period 1961–2012 are temporary or persistent. A variety of time-series and panel data unit root tests are employed. The presence of structural breaks is taken into account when performing those tests. Wood production in approximately 78% of the countries is found to follow a non-stationary process supported by the result that most of the panel unit root tests also point towards a non-stationary process. This indicates that the economic effect will tend to be persistent and suggests that policies affecting wood fuel production, implicitly or explicitly, will have enduring effects. For instance, forest conservation policies will persistently reduce the wood fuel production level.

Keywords: wood fuel production; cross-sectional dependence; structural breaks; unit root tests (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/1996-1073/8/11/12335/pdf (application/pdf)
https://www.mdpi.com/1996-1073/8/11/12335/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:8:y:2015:i:11:p:12335-12728:d:58623

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().