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Article
Publication date: 6 September 2018

Patrícia H. Leal, Antonio Cardoso Marques and Jose Alberto Fuinhas

Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper…

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Abstract

Purpose

Australia is one of the ten largest emitters of greenhouse gases but stands out from the others due to its economic growth without recession for 26 consecutive years. This paper aims to focus on the energy-growth nexus and the effects of energy consumption on the environment in Australia.

Design/methodology/approach

This analysis is performed using annual data from 1965 to 2015 and the autoregressive distributed lag model.

Findings

The paper finds empirical evidence of a trade-off between economic growth and carbon dioxide (CO2) intensity. The results show that increased gross domestic product (GDP) in Australia increased investment in renewable energy sources (RESs), although the renewable technology is limited and has no impact on reducing CO2 intensity in the long run. In contrast to investment in RES, fossil fuels, coal and oil, are decreased by GDP. However, oil consumption increased renewable energy consumption, and this reflects the pervading effect of the growing economy.

Originality/value

Overall, this paper contributes to the literature by analysing the behaviour of both energy consumption and the environment on the growing Australian economy. In addition, this paper goes further by studying the impact of economic growth on renewable and non-renewable energy consumption, as well as on CO2 emissions. The study is conducted on a single country for which literature is scarce, using a recent approach and a long time period.

Details

International Journal of Energy Sector Management, vol. 12 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 7 September 2015

Jose Alberto Fuinhas, Antonio Cardoso Marques and Tânia Noélia Quaresma

The oil-growth nexus is studied in a panel of Organization of the Petroleum Exporting Countries (OPECs), for a long time span (1960-2011), controlling for the specific context of…

Abstract

Purpose

The oil-growth nexus is studied in a panel of Organization of the Petroleum Exporting Countries (OPECs), for a long time span (1960-2011), controlling for the specific context of oil production. Their membership in the cartel put them under a common guidance, which originates phenomena of cross-section dependence/contemporaneous correlation in the panel.

Design/methodology/approach

Recent panel data estimators and co-integration analyses are both pursued and discussed, namely, dealing with the heterogeneity of panels and the countries’ specific effects. The Driscoll–Kraay estimator proves to be appropriate in handling the panel properties.

Findings

Full understanding of the oil-growth nexus requires the short- and long-run effects to be broken down. The growth hypothesis was found only in the short run. The results suggest the presence of the resource curse phenomenon and prove that the cartel’s long-run growth goal could not being fully accomplished. Actually, both oil production and prices are not promoting economic growth in OPEC countries.

Originality/value

The focus is on a group of countries which, besides being oil exporters, have an institutional connection between them, i.e. the OPEC cartel. The paper also contributes by framing the relationship between oil consumption and economic growth within a context of countries that are primary energy producers. Additionally, the paper uses a novel econometric approach and a long time span (52 years) not tested.

Details

International Journal of Energy Sector Management, vol. 9 no. 3
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 6 May 2020

Luís Miguel Marques, José Alberto Fuinhas and António Cardoso Marques

The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main…

Abstract

Purpose

The purpose of this paper is to focus on global energy consumption using the economic growth nexus, the prevalent energy hypothesis at a global level and the impact of the main historical events assessed for the period from 1965 to 2015.

Design/methodology/approach

Given the confirmed presence of endogeneity and cointegration between energy consumption and economic growth, a vector error correction with structural dummies model was used. Furthermore, the impulse-response functions and variance decomposition were computed to evaluate the variables’ dynamics.

Findings

Bi-directional causality running from energy consumption to economic growth was found, both in the short and long-run, supporting the feedback hypothesis. It is proved that the 2008 crisis impacted on the global energy–growth nexus. Furthermore, there is evidence of the impact of the 1990s oil price shock on the nexus. Innovations in energy consumption have a positive impact on economic growth; however, this impact tends to be null in the long run.

Practical implications

The results suggest that at a global level, any energy policy should be carefully designed in order not to hamper economic growth. Countries should not remain indifferent to the policies that other countries might follow. Very few historical crises impacted on the global energy–growth nexus.

Originality/value

This paper offers a different approach to the study of the energy–growth nexus. The energy–growth nexus is analysed in the major macroeconomic aggregate. Global variables reveal their relevance as a benchmark in the energy–growth nexus. Furthermore, this paper arrives at some conclusions about how historical crises impact on global relationships.

Details

International Journal of Energy Sector Management, vol. 14 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 10 January 2023

José Alberto Fuinhas, Nuno Silva and Joshua Duarte

This study aims to explain how delinquency shocks in one type of debt contaminate the others. That is, the authors aim to shed light on the time pattern of delinquencies in…

1105

Abstract

Purpose

This study aims to explain how delinquency shocks in one type of debt contaminate the others. That is, the authors aim to shed light on the time pattern of delinquencies in different debt types.

Design/methodology/approach

This study analyzes the interdependencies between mortgage, credit card and auto loans delinquency rates in the USA from 2003 to 2019, using a panel VAR-X, the panel Granger causality tests and the Geweke linear dependence measures. The authors also compute the impulse response functions of a shock to one kind of debt on the others and decompose the variance of the forecast errors.

Findings

The authors find a statistically significant bidirectional Granger causality between the delinquencies. The Geweke measures of linear dependence and the Dumitrescu and Hurlin Granger non-causality tests support that mortgage predominantly causes credit card and auto loan delinquencies. Auto loans also cause credit card delinquencies. The impulse response functions confirm this pattern. This scenario aligns with a sequence where debtors consider rational first to default on credit cards, second on auto loans and only on mortgages in the last instance. Indeed, credit card delinquencies Granger-cause delinquencies in other debts when it occurs.

Originality/value

To the best of the authors’ knowledge, this is the first study to focus on the temporal pattern of delinquency rates for all the US states, using panel data. Furthermore, the results call for policymakers to design regulations to break the transmission channel from debt delinquencies.

Details

Studies in Economics and Finance, vol. 40 no. 3
Type: Research Article
ISSN: 1086-7376

Keywords

Article
Publication date: 3 January 2022

Eman Elish

The purpose of this research is to investigate the impact of the gender gap on the ecological footprint (EFP) corresponding to its different quantiles.

Abstract

Purpose

The purpose of this research is to investigate the impact of the gender gap on the ecological footprint (EFP) corresponding to its different quantiles.

Design/methodology/approach

Quantile panel regression for 24 countries from the period 2006 to 2017 will be used, for the gender gap and other determinants of EFP.

Findings

Each factor affecting EFP differs in its impact depending on the level of EFP quantile it corresponds to. Gender gap was found to be increasing EFP for the higher quantiles and decreasing EFP for the lower quantiles.

Research limitations/implications

Environmental institutions should be considering the role of gender equality as a factor affecting the environment. Socioeconomic factors sometimes hamper the role of the female gender in preserving the environment. There are variations on how EFP factors differ between individual countries and this opens areas for further studies.

Originality/value

This research contributes to the current research studies by testing the impact of the gender gap on EFP instead of CO2 emission which is widely used in the literature. This topic is considered understudied and one of the few that uses the quantile panel regression to investigate this impact, none of which is used in gender and environment studies. Finally, the model used in the study uses a more comprehensive extension of the “Stochastic Impact by Regression on Pollution, Affluence and Technology” model compared to the existing empirical studies in this area.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 15 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Article
Publication date: 7 April 2023

Pedro Bento, Sílvio Mariano, Pedro Carvalho, Maria do Rosário Calado and José Pombo

This study is a targeted review of some of the major changes in European regulation that guided energy policy decisions in the Iberian Peninsula and how they may have aggravated…

Abstract

Purpose

This study is a targeted review of some of the major changes in European regulation that guided energy policy decisions in the Iberian Peninsula and how they may have aggravated the problem of lack of flexibility. This study aims to assess some of the proposed short-term solutions to address this issue considering the underlying root causes and suggests a different course of action, that in turn, could help alleviate future market strains.

Design/methodology/approach

The evolution of the most important (macro) energy and price-related variables in both Portugal and Spain is assessed using market and grid operator data. In addition, the authors present critical viewpoints on some of the most recent EU and national regulation changes (official document analysis).

Findings

The Iberian energy policy and regulatory agenda has successfully promoted a rapid adoption of renewables (main goal), although with insufficient diversification of generation technologies. The compulsory closings of thermal plants and an increased tax (mainly carbon) added pressure toward more environmentally friendly thermal power plants. However, inevitably, this curbed the bidding price competitiveness of these producers in an already challenging market framework. Moving forward, decisions must be based on “a bigger picture” that does not neglect system flexibility and security of supply and understands the specificities of the Iberian market and its generation portfolio.

Originality/value

This work provides an original account of unprecedented spikes in energy prices in 2021, specifically in the Iberian electricity market. This acute situation worries consumers, industry and governments. Underlining the instability of the market prices, for the first time, this study discusses how some of the most important regulatory changes, and their perception and absorption by involved parties, contributed to the current environment. In addition, this study stresses that if flexibility is overlooked, the overall purpose of having an affordable and reliable system is at risk.

Details

International Journal of Energy Sector Management, vol. 18 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

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