Functional data analysis of the relationship between electricity consumption and climate change drivers
A. Elayouty and
Hala Abou-Ali
Journal of Applied Statistics, 2023, vol. 50, issue 10, 2267-2285
Abstract:
Climate change has become increasingly important in recent years. It is the outcome of the burning of fossil fuels that increased the concentration of atmospheric carbon dioxide (CO $ _2 $ 2), over the last century. Mitigating the impacts of climate change requires a better understanding and assessment of the countries' economic decisions on the amount of CO $ _2 $ 2 emissions. This paper assesses the variability between the different countries in the trends of CO $ _2 $ 2 emissions and electricity consumption from 1975 to 2014, while identifying clusters of countries of similar trends over time. The novel methodology applied in this paper enables us to assess long-debated issues in climate literature. The temporal dynamic effects of electricity consumption and economic growth on CO $ _2 $ 2 emissions across countries are studied using functional data analysis (FDA) methods. The latter have proven to be useful tools for visualising similarities and differences in the non-linear trends of CO $ _2 $ 2 emissions without forcing linear trends and stationary relationships which can be unrealistic and misleading. The results indicate the possibility of identifying changes in the trends of CO $ _2 $ 2 emissions and electricity consumption for a wide range of heterogeneous countries over the study period. The findings also reveal that economic growth puts a strain on the environment, where many high-income countries are still away from attaining economic-energy sustainability.
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:taf:japsta:v:50:y:2023:i:10:p:2267-2285
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DOI: 10.1080/02664763.2022.2108773
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