EconPapers    
Economics at your fingertips  
 

Are shocks to natural gas consumption transitory or permanent? A more powerful panel unit root test on the G7 countries

Yifei Cai and Cosimo Magazzino ()

Natural Resources Forum, 2019, vol. 43, issue 2, 111-120

Abstract: This article re‐examines the persistence in natural gas consumption using an alternative methodology. We compare the results of traditional panel unit root tests with those provided by Bahmani‐Oskooee et al., which allow for both sharp and smooth breaks. Our analysis uses data for the G7 countries over the 1965–2016 years. The empirical findings show that while traditional unit root tests with sharp breaks lean towards the non‐stationarity of the series for all the G7 countries, modeling breaks in our unit root testing methodology can assert that natural gas consumption is non‐stationary only for Canada, France, Italy, and USA. These results imply that, for the majority of our sample, energy demand management policies designed to shrink energy consumption will have temporary effects, as energy consumption will return to its trend path.

Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/1477-8947.12169

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:wly:natres:v:43:y:2019:i:2:p:111-120

Access Statistics for this article

More articles in Natural Resources Forum from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-09-22
Handle: RePEc:wly:natres:v:43:y:2019:i:2:p:111-120