Citation

Solarin, Sakiru Adebola and Luis Alberiko, Gil-Alana and Al-Mulali, Usama (2018) Stochastic convergence of renewable energy consumption in OECD countries: a fractional integration approach. Environmental Science and Pollution Research, 25 (18). pp. 17289-17299. ISSN 0944-1344, 1614-7499

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Abstract

In this article, we have examined the hypothesis of convergence of renewable energy consumption in 27 OECD countries. However, instead of relying on classical techniques, which are based on the dichotomy between stationarity I(0) and nonstationarity I(1), we consider a more flexible approach based on fractional integration. We employ both parametric and semiparametric techniques. Using parametric methods, evidence of convergence is found in the cases of Mexico, Switzerland and Sweden along with the USA, Portugal, the Czech Republic, South Korea and Spain, and employing semiparametric approaches, we found evidence of convergence in all these eight countries along with Australia, France, Japan, Greece, Italy and Poland. For the remaining 13 countries, even though the orders of integration of the series are smaller than one in all cases except Germany, the confidence intervals are so wide that we cannot reject the hypothesis of unit roots thus not finding support for the hypothesis of convergence.

Item Type:	Article
Uncontrolled Keywords:	Convergence, Renewable energy consumption, Unit roots, Fractional integration
Subjects:	T Technology > TJ Mechanical Engineering and Machinery > TJ807-830 Renewable energy sources
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	15 Mar 2021 00:18
Last Modified:	15 Mar 2021 00:18
URII:	http://shdl.mmu.edu.my/id/eprint/7460

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