Impact Of Natural Gas Consumption Research Articles

Asymmetric impacts of natural gas consumption on renewable energy and economic growth in Kingdom of Saudi Arabia and the United Arab Emirates

The globe is now in ecological turmoil as a result of the unrelenting increase in global warming. As a result, governments worldwide are committing to decarbonizing the environment, with the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA) playing an important role in this effort. Hence, this paper evaluates the nonlinear (asymmetric) impact of natural gas consumption on renewable energy consumption and economic growth in the KSA and the UAE utilizing data stretching from 1990 to 2020. The study also considers other drivers of renewable energy consumption and economic growth, such as trade openness and CO2 emissions. The study utilizes nonlinear autoregressive distributed lag (ARDL) to evaluate these associations. The outcomes of bounds nonlinear ARDL (NARDL), affirm the long-run association between the variables in both countries. The nonlinear results show that positive and negative shocks in natural gas consumption have a negative impact on renewable energy in both UAE and KSA. In contrast, positive and negative shocks in natural gas consumption impact economic growth positively. The study proposed vital policy recommendations based on these results.

Managerial Issues Regarding the Role of Natural Gas in the Transition of Energy and the Impact of Natural Gas Consumption on the GDP of Selected Countries

Natural gas is considered an important bridge in the transition of energy in the world. However, the development and management of unconventional gas now face many challenges. This paper aims to provide an overview of what would be required to formulate and implement the trend of energy transition and natural gas use in the world. Selected managerial issues regarding the role of natural gas are presented, including chosen statistical data on natural gas consumption, forecasts for the demand for natural gas, and the potential of unconventional gas. The empirical part of the study examines the impact of natural gas consumption on the GDP of 14 G20 countries during the period of 1994 to 2018. The pooled mean group model (PMG) is employed in this study. Based on the cointegration test results, it was found that natural gas consumption and population have a long-run relationship with CO2 emissions. Consistent with other studies, we found a positive relationship between CO2 emissions and natural gas consumption, GDP, and population.

Is there a relationship between natural gas consumption and the environmental Kuznets curve? Empirical evidence from Bangladesh.

Bangladesh has significant natural gas reserves, and total demand has climbed substantially in recent years. The study uses the autoregressive distributed lag (ARDL) model for cointegration and the vector autoregressive(VAR) Granger causality model to analyze a long-run link between natural gas (NG) consumption, economic development, urbanization, and CO2 emissions. The objective is to investigate the relationship between the environmental Kuznets curve (EKC) and Bangladesh's NG consumption using data from the years 1990 to 2018. According to the ARDL model, economic growth, urbanization, and NG consumption, all have a positive and significant influence on CO2 emissions. Despite having a negative coefficient, the square of economic development has a significant impact on CO2 emissions. In the long run, it verifies the EKC hypothesis in Bangladesh. Both linear and nonlinear economic development determinants display statistically significant positive and negative signals in the short run. From Bangladesh's perspective, this also demonstrates the presence of an EKC. The impact of NG consumption in the short run is insignificant; nevertheless, urbanization has a significant effect. The VAR Granger causality demonstrates that economic development and urbanization have a bidirectional response; however, NG consumption and CO2 emissions have just one-way causality. The key policy implication of the study is that NG use is expected to raise emissions. Increasing the share of clean energy in the energy utilization system, such as nuclear power and renewable energy, is a plausible policy choice.

Does low-carbon energy transition mitigate energy poverty? The case of natural gas for China

Low-carbon energy transition has promoted China's green and sustainable development; however, it will be hindered by energy poverty. To investigate whether low-carbon energy transition can mitigate the energy poverty, based on panel data of China's 30 provinces covering the period of 2004–2017, this study investigates the impact of natural gas consumption (NGC) on China's energy poverty by employing the differential generalized method of moments (D-GMM) as the benchmark method. For this purpose, China's energy poverty is assessed by constructing a composite index that includes four sub-indices. We also analyze the influencing mechanism and heterogeneous impact of NGC on energy poverty. The overall estimation results imply that the impact of NGC on China's energy poverty is significantly negative; in other words, increased NGC can effectively mitigate China's energy poverty. Moreover, through the influencing mechanism check, the impact of NGC on energy poverty is mainly sourced from the four sub-indices, i.e., energy service availability (ESA), energy consumption cleanliness (ECC), energy management completeness (EMC), and household energy affordability & energy efficiency (EAE). Furthermore, the impact of NGC on energy poverty differs across various regions. Finally, several important policy implications are highlighted for eliminating China's energy poverty and promoting growth in the country's low-carbon energy industry.

Whether natural gas consumption bring double dividends of economic growth and carbon dioxide emissions reduction in China?

Rapid development of China's economy is accompanied by a huge amount of carbon dioxide (CO2) emissions. Natural gas consumption (NGC) offers the possibility of achieving double dividends, namely economic growth and CO2 emissions reduction. It is therefore essential to investigate the double dividends of NGC to China's low carbon development. This study establishes one expanded Cobb-Douglas production function and Kaya function, as well as corresponding panel regression econometric models, to evaluate the double dividends of NGC at both national and regional levels by using China's provincial panel data for the period of 1997–2017. The results show that at national level, NGC promotes economic growth and has potential to facilitate CO2 emissions reduction, but with a small share. At regional level, NGC can achieve economic growth in the northeast, the northern coastal and the eastern coastal regions although the increasing share of NGC fails to further stimulate CO2 emissions reduction. NGC impedes economic growth in the southern coastal region and the southwest region, and the increasing share of NGC could not bring CO2 emissions reduction dividend. In the Yellow River midstream region and the northwest region, the impact of NGC on the double dividends is insufficient. In the Yangtze River midstream region, NGC cannot significantly encourage economic growth and CO2 emissions reduction. NGC contributes less to economic growth than coal and oil at both national and regional levels. The high carbon consumption of residents and industries leads to more CO2 emissions, but the CO2 emissions reduction induced by the increasing share of NGC is insufficient. Therefore, it is necessary to improve natural gas supply network, increase monetary incentive to NGC, expand domestic and international natural gas supply sources, and prepare region-specific policies on supporting NGC.

Is Natural Gas Consumption Mitigating Air Pollution? Fresh Evidence from National and Regional Analysis in China

As China has called for the mitigation of fine particulate matter such as PM 2.5 emissions, developing the natural gas industry is considered as an effective way to reach this mitigation goal. The positive impact of natural gas on inhibiting PM 2.5 emissions is well documented, but the regional difference in this field is scant. Therefore, this study assesses the impact of natural gas consumption on PM 2.5 emissions and examines the environmental Kuznets curve (EKC) relationship between economic growth and PM 2.5 emissions, based on the panel data of 30 provinces in China from 1998 to 2016. Furthermore, the regional difference is analyzed from the perspective of economic development and natural gas development. The estimation results report two inverse relationships between PM 2.5 emissions and natural gas consumption in the case of China. Specifically, at the national level, PM 2.5 emissions has risen by 0.023% with natural gas consumption demonstrating 1% growth, which indicates that natural gas consumption in China will exacerbate PM 2.5 emissions. However, the use of natural gas has an additional effect on PM 2.5 emissions in the regions with high levels of natural gas consumption. For the high consumption region of natural gas, a 1% increment of natural gas usage inhibits the release of PM 2.5 by 0.017%. The result implies that the mitigation effects on PM 2.5 emissions only arise in the areas where natural gas is largely used. Furthermore, the validity of EKC pattens between economic growth and PM 2.5 emissions is confirmed across China, and the EKC has reached its peak. Varied causality links among PM 2.5 emissions, economic development, and natural gas consumption have been distinguished according to the causality flow. Finally, two efficient policy implications are proposed to address PM 2.5 emissions and accelerate the growth of the natural gas industry in China.

Impact of natural gas consumption on sub-Saharan Africa's CO2 emissions: Evidence and policy perspective

With huge natural gas(NG) reserves and current low (1%) share of non-hydro renewables in Sub-Saharan Africa (SSA), can natural gas offer SSA a low-carbon energy transition? Employing data from 1980 to 2017, this paper investigates the impact of NG consumption on SSA's CO2 emissions using data-driven nonparametric additive regression(NPAR) which can reveal both linear and nonlinear effects. Augmenting NPAR with translog production function(TPF) estimates of interfuel substitution elasticities and bias technological progress over sample period(advantage of TPF), we further provide evidence of the indirect effect of NG consumption on SSA's CO2 emissions through mechanism analysis. From the empirical results, the linear effect shows NG positively impact CO2 emissions while the nonlinear effect indicates a downward decreasing trend (meaning expansion in NG consumption will gradually lower CO2 emissions). Nonlinearly, urbanization and energy efficiency also show positive “inverted U-Shaped” and “downward slopping” respectively meaning sustainable urban energy and energy efficiency practices improvement can lead to CO2 reduction respectively in SSA. The reducing effect of NG consumption on CO2 (the nonlinear effect) is realized through the enhancement of positive bias technological progress of NG over coal and oil but not merely substitution of coal and oil for NG. Technological progress improvement in NG use will also reduce the positive linear effect of urbanization and energy efficiency on CO2 emissions of SSA. Oil is more likely to be substituted for NG than that of coal in SSA. The scenario analysis shows a total of 6.9%, 7.6% and 8.3% of energy conservation is realized in 2022, 2026 and 2030 with a corresponding CO2 reduction of 18.7%, 20.7% and 22.9% respectively for a continuous 10% investment in NG. Institutional, market-oriented and technology challenges hinder NG development among major producers in SSA. Based on the results, several policy measures are put forward to promote SSA's low-carbon energy transition.

Nonlinear unit root and nonlinear causality in natural gas - economic growth nexus: Evidence from Nigeria

This paper carries out an econometric examination of nonlinear unit root and nonlinear causality in the natural gas-economic growth nexus in Nigeria. The techniques employed include the Kapetanios-Shin-Shell (KSS) nonlinear unit root test, Kruse nonlinear unit root test, Brock-Dechert-Scheinkman (BDS) nonlinearity test, Nonlinear Ordinary Least Squares (NOLS) model, and, the Hatemi-J asymmetric causality test. The results revealed that natural gas consumption and economic growth series follow nonlinear trend process as indicated by the KSS and Kruse tests, and that the relationship between natural gas consumption and economic growth in Nigeria is nonlinear as confirmed by the BDS and NOLS tests, where an increase in natural gas consumption increases economic growth. The asymmetric causality test revealed evidence of bidirectional causality between the positive impact of natural gas consumption and economic growth, and, unidirectional causality running from economic growth to negative impact of natural gas consumption. For further research, the paper suggests extending the discussions on the trend process of energy consumption to the Organization of Petroleum Exporting Countries (OPEC) or to other regional energy organizations using panel data techniques.

Can expanding natural gas consumption reduce China's CO2 emissions?

China is now the world's largest emitter of carbon dioxide (CO2), thus leading to China facing enormous pressure on CO2 emission reduction. Natural gas is a high thermal and low-emission energy. Expanding natural gas consumption cannot only meet the growing demand for energy consumption but also optimize energy consumption structure. Therefore, many scholars have investigated the effect of natural gas consumption on CO2 emissions. However, ignoring a large number of nonlinear relationships between economic variables, the vast majority of existing studies use traditional linear models to explore the relationships between natural gas consumption and CO2 emissions. In order to make up for the gap in existing research, this paper uses the nonparametric additive regression model with data-driven features to investigate the relationships between the two. The results show that natural gas consumption has an inverted “U-shaped” nonlinear effect on CO2 emissions in the eastern region, but a positive “U-shaped” nonlinear effect in the central and western regions. The linear impact of natural gas consumption on CO2 emissions in the eastern and central regions is higher than that in the western region, due to the differences in resource availability and energy prices, as well as natural gas consumption. Therefore, during the process of promoting natural gas consumption, the central and local governments should adopt heterogeneous measures at different stages of development.

Asymmetric cointegration and causality between natural gas consumption and economic growth in Nigeria

This paper investigates asymmetric cointegration, asymmetric adjustment, and causality between natural gas consumption and economic growth in Nigeria using the momentum threshold autoregressive (M-TAR) model and the Granger-causality test in a momentum threshold error correction model (M-TECM). The results revealed evidence of asymmetric cointegration, asymmetric adjustment which suggests that the negative discrepancies from the equilibrium error adjust more rapidly than the positive discrepancies and that there is bidirectional causality between the two variables. The implication of the results is that a shock that decreases the impact of natural gas consumption on economic growth adjusts more rapidly than a shock that increases it and that a consistent natural gas supply increases growth and similarly a rise in growth leads to rise in natural gas consumption. Therefore, policymakers in Nigeria need to confine more attention to the shocks stemming from the decrease in natural gas consumption and the country should adopt energy exploration policies.

Impact of natural gas consumption on CO2 emissions: Panel data evidence from China’s provinces

This study utilizes 1995–2014 panel data of the 30 provinces in China to investigate the existence of the environmental Kuznets curve (EKC) for carbon dioxide (CO2) emissions in China. The potential impact of natural gas consumption on CO2 emissions is also analyzed. According to the panel fully modified ordinary least squares (FMOLS) and panel dynamic OLS (DOLS) estimation results, in the long run, an inverted U-shaped EKC link exists between per capita CO2 emissions and per capita gross domestic product (GDP). In the panel FMOLS model and panel DOLS model, with 99,261 yuan and 59,159 yuan for per capita GDP, the EKC of China will reach its peak by around 2029 or 2019, respectively. Furthermore, natural gas consumption has a significant negative impact on CO2 emissions, which indicates that, 1% increase in natural gas consumption for the panel FMOLS model and panel DOLS model will decrease CO2 emissions by 0.033627% or 0.054914%, respectively. At the provincial level, provinces in which the EKC hypothesis holds are predominantly concentrated in central and eastern China, and the energy consumption structure (share of natural gas in total energy consumption) may affect the occurrence of a significant negative impact of natural gas consumption on CO2 emissions. Another finding of this study is that both the existence of EKC and the occurrence of a positive/negative impact of natural gas consumption on CO2 emissions are independent of the individual provincial per capita GDP.

Natural gas, trade and sustainable growth: empirical evidence from the top gas consumers of the developing world

ABSTRACTNatural gas is the key non-renewable source of energy for a low-carbon economy. The research applies heterogeneous panel techniques to investigate the impact of natural gas consumption on economic growth across a panel of top 15 natural gas consumers of the developing world. We establish long-run dynamics with cross-sectional dependence and heterogeneity across the sample countries. The long-run output elasticities suggest that the natural gas consumption and trade variables have significant positive effect on the output in a panel of developing economies. Further, we establish feedback relationship among gas consumption, output and trade in the short-run. Given the significance of natural gas as the low-emission source of energy, we suggest governments and policy advisers of these major natural gas consumers to focus on developing pipeline infrastructure for adequate supply, reforming natural gas sector with a competitive price structure to combat excess demand in individual natural gas market. With trade integration, majority of these countries need to incorporate these initiatives to improve the technologies such as combined cycle power plant technology and value-added chemical production technology to achieve sustainable economic growth.

Natural gas consumption, income, urbanization, and CO2 emissions in China and India.

The objective of this study is to examine the impact of natural gas consumption, output, and urbanization on CO2 emission in China and India for the period, 1965-2013. A cointegraton test, which provides for endogenously determined structural breaks, has been applied to examine the long-run relationship and to investigate the presence of environmental Kuznets curve (EKC) in the two countries. The presence of causal relationship between the variables is also investigated. The findings show that there is a long-run relationship in the variables and natural gas, real GDP, and urbanization have long-run positive impact on emission in both countries. There is no evidence for EKC in China and India. The findings further suggest that there is a long-run feedback relationship between the variables. The policy inferences of these findings are discussed.

The role of natural gas consumption and trade in Tunisia's output

This paper examines the impact of natural gas consumption, real gross fixed capital formation and trade on the real GDP in the case of Tunisia over the period 1980–2010. We use an Autoregressive Distributed Lag (ARDL) bounds testing approach to test for cointegration between the variables. The Toda–Yamamoto approach is then used to test for causality. Our findings indicate the existence of a long-term relationship between the variables. Natural gas consumption, real gross fixed capital formation and trade add in economic growth. Natural gas consumption, real gross fixed capital formation and real trade cause real GDP in Tunisia. These findings open up new insights for policymakers to formulate a comprehensive energy policy to sustain economic growth in the long-term.