Consumption Nexus Research Articles

Financial Development and Renewable Energy Consumption Nexus: New Evidence from Emerging Economies

Financial Development and Renewable Energy Consumption Nexus: New Evidence from Emerging Economies

Economic growth and non-renewable and renewable energy consumption nexus in Morocco: Causality analysis in VAR model

Economic growth and non-renewable and renewable energy consumption nexus in Morocco: Causality analysis in VAR model

Economic growth and non-renewable and renewable energy consumption nexus in Morocco: causality analysis in VAR model

Economic growth and non-renewable and renewable energy consumption nexus in Morocco: causality analysis in VAR model

The Mediating Role of Financial Development in the Remittances and Household Consumption Nexus: Evidence from a Panel of African and Asian Countries

This paper examines whether the strength of the relationship between remittances and household consumption, documented in the empirical literature, varies with the financial deepening. It uses a nonlinear panel model and the pooled mean group estimator for a sample of 19 countries over the period 1987 to 2013. The results show that households in financially developed countries gain significantly from remittances. They also indicate that per capita income is positively related to household consumption while inflation and urbanization are negatively related to it. These findings suggest that financial development should be enhanced not only to favor the inflows of remittances to developing countries but also to effectively channel remittances to productive activities and credit opportunities that can significantly improve household consumption.

Re-evaluating the asymmetric economic policy uncertainty, conventional energy, and renewable energy consumption nexus for BRICS.

Economic policy uncertainty has increased throughout the world since the previous few decades. Moreover, economic policy uncertainty significantly influences economic activities that may also produce a strong effect on energy consumption. The objective of the study is to investigate the effect of economic policy uncertainty on renewable and non-renewable energy consumption in the case of BRICS countries, for the period 1991–2019. The outcome of the panel NARDL-PMG modeling technique demonstrates that a positive shock in economic policy uncertainty exerts a negative impact on renewable energy consumption and positive impact on non-renewable energy consumption in the short-run and long-run. However, a negative shock in economic policy uncertainty has a positive impact on renewable energy consumption and negative impact on non-renewable energy consumption in the long run, while this effect becomes statistically insignificant in the short run. Numerical elements of long-run results infer that economic policy uncertainty is more influence on renewable energy compared to non-renewable energy consumption in BRICS in long run. On the basis of findings, the study suggests that the authorities should launch such programs that result in shrinking uncertainties linked with economic policy.

Petroleum Consumption and Economic Growth Nexus in Nigeria: Evidence from Nonlinear ARDL and Causality Approaches

Petroleum Consumption and Economic Growth Nexus in Nigeria: Evidence from Nonlinear ARDL and Causality Approaches

Biomass energy consumption and its impacts on ecological footprints: analyzing the role of globalization and natural resources in the framework of EKC in SAARC countries.

Research scholars have diverted their attention towards the effect of biomass energy use on ecological footprints. Although recent research has investigated this association, the link between ecological footprints and biomass energy consumption has not provided consistent results. Therefore, this research attempts to fill the gap by examining the ecological footprints-biomass energy consumption nexus in the context of environmental Kuznets curve over the period of 1990-2016 in South Asian Association for Regional Corporation (SAARC) countries. Moreover, this work incorporates globalization, natural resources, and economic growth (GDP) for empirical analysis. In doing empirical analysis, we applied some econometric analysis to deal with the issue of cross-sectional dependence in the data. The outcomes of fully modified ordinary least squares and dynamic ordinary least squares estimations show that biomass energy consumption increases ecological footprints in SAARC countries. Moreover, globalization and GDP are also increasing ecological footprints. Environmental Kuznets curve cannot be validated in estimated countries. The Dumitrescu-Hurlin causality test confirms one-way causality from biomass energy usage to ecological footprints. On the base of empirical results, several policy implications are suggested for SAARC countries.

Revisiting the economic growth–energy consumption nexus: Does globalization matter?

This study revisits the economic growth–energy consumption thesis by investigating the impact of economic, social, and political globalization on the economic growth–energy consumption nexus in a panel of 23 emerging economies for the period 1970–2015. The results that emanate from an instrumental variable generalized method of moment model suggest the following: (i) Energy consumption and economic growth are interdependent. (ii) Economic and political globalization retard economic growth, while social globalization increases economic growth. (iii) Economic, social and political globalization have an inverted U-shaped relationship with economic growth. (iv) Economic, social and political globalization interact with energy consumption to retard economic growth. (v) Economic, social and political globalization do not affect energy consumption. (vi) Economic, social and political globalization have a U-shaped relationship with energy consumption. (vii) Economic and social globalization condition economic growth to increase energy consumption, while political globalization moderates the impact of economic growth to reduce energy consumption. The policy implications of these findings for emerging economies are discussed.

Economic Growth, CO2 Emissions, Electricity Production, and Consumption Nexus in Bangladesh

This paper seeks to find the causal relationship between economic growth, electricity consumption, carbon emissions, electricity production from oil, and electricity production from gas. The data were taken from World Development Index (WDI) for the period of 1972-2014. For stationarity checking, visualization and some econometrics techniques like ADF and Phillips-Perron test have been adopted. For testing the long-run relationships among the variables, the Johansen cointegration testing procedure has been considered. This test ensured that there are long-run relationships among the variables. To capture the short-run dynamics, a VECM test has been done, and to find the direction of causation, the Granger causality approach has been tested. The results find that there was a bidirectional causality from CO2 emissions to gross domestic product (GDP) and from electricity production from gas to GDP where unidirectional causality was found from GDP to electricity consumption and electricity production from oil to GDP. CUMSUM and CUSUM approaches have also been considered to test the stability of the parameters. Policy implications of the research indicate that Bangladesh should give importance to low carbon emission technologies to reduce the CO2 emissions level with a view to keeping Bangladesh safe from natural calamities along with economic growth.
 JEL Classifications: C32, O13, Q43

Blue Water Footrpint- Industrial Water Consumption Nexus: A Case of Water Supply for Industrial Activities in Semambu Water Treatment Plant

Water supply and industrial activities have a common attribute of being insufficient water resources. Both are involved in water footprint and water consumption Nexus, meaning that industrial water consumption is impacting the water footprint of water treatment plants within the same area. Therefore, in order to achieve the environmental sustainability of water resource, the requirement of having effective approach in water utilisation accounting is crucial. Thus, water consumption for industrial activities and water footprint of Semambu water treatment plant has been a case study to link the nexus. As the industrial development is expanding each year, water demand for water supply also increases. Generally, heavy industrial activities consume more water than the other types of industries. In this study, heavy industrial activities of water consumption show an impact towards total water footprint of the particular water treatment plant in Kuantan river basin. In 2018, the percentage of highest industries that exist is manufacturing sector with 32% while the lowest is 1% compared to 2015, 2016 and 2017 that only scored 30% for manufacturing sector respectively. This shown that there is an increment growth in manufacturing sector in 2018 when they suddenly go up 2% higher compared to 3 years previously. The results focus on total water footprint accounting of Semambu water treatment plant (WTP) and the impact of total blue water consumptions for industrial activities. Finally, total water footprint of water treatment plants in Kuantan river basin will be sustained to cater the industrial needs except for Semambu WTP since Semambu is a gazetted area for industrial. Hence the new method of water utilisation for the industrial activities must be proposed to decrease the dependent towards WTP, especially in Semambu area.

Residential Solar Energy Consumption and Greenhouse Gas Nexus: Evidence from Morlet Wavelet Transforms

Residential Solar Energy Consumption and Greenhouse Gas Nexus: Evidence from Morlet Wavelet Transforms

The Financial Development-Renewable Energy Consumption Nexus in the Case of Azerbaijan

This article analyzed the relationship between financial development, renewable energy consumption, economic growth, and energy prices in Azerbaijan by employing time series data for the time span of 1993–2015. The autoregressive distributed lagged (ARDL) technique was applied in empirical estimations, because it performs better than all the alternative techniques in small samples, which was the case here in this article. The results of estimation found that there is a positive and statistically significant influence of financial development and economic growth on renewable energy consumption, whereas the prices of energy proxied by CPI have an adverse impact on renewable energy consumption in Azerbaijan. Also, estimation results demonstrated that a 1% rise in financial development, proxied by domestic credit as a percentage of GDP, and economic growth increase renewable energy consumption by 0.16% and 0.60%, respectively. The different financial development impacts on renewable energy consumption and related policy implications were also introduced.

The impact of natural disaster on energy consumption: International evidence

This research shows that natural disasters may hurt energy consumption by using data on 123 countries over the period 1990–2015 and classifying them according to their economic development level and region based on World Development Indicators . We employ a two-step system-GMM method to examine the effect of natural disasters on energy consumption, presenting findings that support our hypotheses in the models and show a strong negative effect for low-income countries or those in the Africa region. After considering an alternative proxy for natural disaster, we implement quantile regression methods. Their results find that natural disasters exhibit a negative and significant impact on oil, renewable, and nuclear energy consumptions. The quantile regression models used in the robustness check present that the effects are stronger for low-level energy consumption economies. • Natural disasters exhibit a negative impact on oil, renewable, and nuclear consumptions. • This negative impact clearly appears in low-income countries or in Africa region. • Different natural disasters and energy sources affect the disaster-energy consumption nexus. • Provide policy implications for governments, policy-makers, and researchers.

Unifying nature of food: consumer-initiated cooperatives in Istanbul

Purpose This paper aims to study how activists involved in consumer-initiated cooperatives, in a specific context, challenge the practices of the neoliberal system and develop counter-practices that are ingrained with their values. It aims to access the transformative capacity and inclusiveness of consumer-initiated cooperatives and the role played by prefigurative practices in changing the status quo. Three practices – defetishization of agricultural commodities, surplus generation and distribution, prefiguration – that enable the inclusion of those groups who are marginalized in the food production and consumption nexus by neoliberal policies are identified. Design/methodology/approach The findings of this paper were developed from 23 unstructured interviews, participant observation and analysis of the social media accounts of five consumer-initiated cooperatives located in different districts of Istanbul and which are involved in a collective response to the neoliberal policies. Findings The study discusses that, in a specific context, political events and economic policies can be a catalyst for the initiation of alternative consumer-initiated cooperatives. The findings indicate that these organizations can develop and articulate prefigurative practices that are influential in transforming the prevailing capitalist food provisioning system to be more inclusive. Research limitations/implications The findings offer an alternative view to the dominant capitalist logic and advance the concept of how the economic sphere can be re-politicized and how the persevering notion of financial performance is resolved by invoking values of inclusion, solidarity, responsibility and sharing. The findings are based on the study of five cases in a specific context during a specific period. Originality/value This paper focuses on cooperatives owned and governed by activist consumers and presents results concerning their underlying practices for creating a food provisioning system that is inclusive and aiming for social justice and equality. Similarly, it provides evidence of how local political and economic conditions influence the appropriation and development of these practices – commodity defetishization, surplus distribution and prefiguration.

LEVEL OF EDUCATION AND RENEWABLE ENERGY CONSUMPTION NEXUS IN SAUDI ARABIA

Purpose: A level of education may change the energy consumption habits of people. Further, economic growth may also demand cleaner energy consumption for better environmental quality. This research explores the impacts of education and economic growth on the renewable energy consumption of Saudi Arabia.
 Methodology: This research utilizes the unit root test of Dickey & Fuller (1981), cointegration test of Pesaran et al. (2001), and bound testing values of Kripfganz & Schneider (2020).
 Main Findings: Income and secondary education increase Renewable Energy Consumption (REC) in the long and short run. Primary education reduces REC in the long run, and the lag of primary education has a positive effect on REC.
 Implication: This research recommends to increase the level of education to promote renewable energy consumption for a cleaner environment.
 Novelty: Educational level and renewable energy consumption nexus have not been investigated in Saudi Arabia. Therefore, we claim an empirical contribution.

Analysing energy consumption and poverty reduction nexus in Nigeria

ABSTRACT This study analysed the impact of energy consumption on Nigeria’s poverty and causality between poverty and energy consumption. Annual data on energy sources and poverty headcount were used spanning from 1990 to 2017. The Autoregressive Distributed Lag Model (ARDL) was engaged. The consumption of modern energy was established to be efficient in reducing poverty in Nigeria. Non-modern sources of energy consumption (Fuelwood and coal) were found to considerably and significantly increase poverty while electricity was revealed to extensively reduce poverty in Nigeria. Household size, female labour force participation rate, and inflation rate were also substantial contributors to the high poverty level in Nigeria. A bi-directional causality was found between poverty and low quality of energy consumption (fuelwood). We consequently, advocate for the availability of modern energy supplies, increasing female employment rate, and the reduction of household sizes for effective poverty reduction in Nigeria.

4 Migration research and analysis: Growth, reach and recent contributions

4 Migration research and analysis: Growth, reach and recent contributions

Change-point detection in CO2emission-energy consumption nexus using a recursive Bayesian estimation approach

AbstractThis article focuses on the synthesis of conditional dependence structure of recursive Bayesian estimation of dynamic state space models with time-varying parameters using a newly modified recursive Bayesian algorithm. The results of empirical applications to climate data from Nigeria reveals that the relationship between energy consumption and carbon dioxide emission in Nigeria reached the lowest peak in the late 1980s and the highest peak in early 2000. For South Africa, the slope trajectory of the model descended to the lowest in the mid-1990s and attained the highest peak in early 2000. These change-points can be attributed to the economic growth, regime changes, anthropogenic activities, vehicular emissions, population growth and industrial revolution in these countries. These results have implications on climate change prediction and global warming in both countries, and also shows that recursive Bayesian dynamic model with time-varying parameters is suitable for statistical inference in climate change and policy analysis.

Economic growth, renewable and nonrenewable energy consumption nexus in India

PurposeThe purpose of this paper is to examine the nexus among economic growth, nonrenewable energy consumption and renewable energy consumption in India over the period 1971-2017.Design/methodology/approachThis study uses nonlinear autoregressive distributed lags model and asymmetric causality test to explore nonlinearities in the dynamic interaction among the variables.FindingsThe findings indicate that the impact of nonrenewable energy consumption and renewable energy consumption on the economic growth is asymmetric in both long run and short run. In long run, a positive shock in nonrenewable energy consumption and renewable energy consumption exerts a positive impact on growth. However, the negative shocks in nonrenewable energy consumption produce larger negative effects on the growth. The results of nonlinear causality test indicate a unidirectional causality from nonrenewable energy consumption and renewable energy consumption to economic growth and thus support “growth hypothesis” in context of India.Practical implicationsThe findings imply that policy measures to discourage nonrenewable energy consumption may produce deflationary effects on economic growth in India. Further, the findings demonstrate the potential role of renewable energy consumption in promoting economic growth.Originality/valueTo the best of the authors’ knowledge, this study is the first attempt to explore nonlinearities in the relationship between economic growth and the components of energy consumption in terms of renewable and nonrenewable energy consumption.

Impact of Household Electricity Consumption on Standard of Living in Nigeria

This study examined the impact of household electricity consumption on standard of living in Nigeria with level of education, poverty rate, per capita income and life expectancy as proxy for standard of living. Deviating from the popular electricity consumption and economic growth nexus, this present study focused on the impact of electricity consumption on the components of standard of living within the period of 1981 to 2017. The study adopted the Autoregressive Distributed Lag (ARDL) Bound Test in estimating the long-run and short-run relationship of the variables of the model. The study, therefore, found a positive long-run relationship between household electricity consumption and level of education, poverty rate, per capita income and life expectancy. The study also found significant short-run relationship between household electricity consumption and level of education, poverty rate, per capita income and life expectancy. From the outcome of the study, the researcher concluded that household electricity consumption impacted positively on standard of living in Nigeria although the impact is not large as expected. The study, therefore, recommends amongst others, that government should significantly improve power generation and distribution in order to enhance access to electricity consumption among her citizens in order to improve standard of living. Keywords : Household Electricity Consumption (HHEC), Standard of living, Poverty rate, Income per capita and Educational enrollment DOI : 10.7176/JETP/10-1-05 Publication date: February 29 th 2020