the carbon footprint of uk households 1990 2004 a socio economically disaggregated quasi multi regional input output model this paper presents a socio economically disaggregated framework for attributing co2 emissions to people s high level functional needs based around a quasi multi regional input output qmrio model the study in theory takes into account all co2 emissions that arise from energy used in production of goods and services to satisfy uk household demand whether the emissions occur in the uk or abroad results show that co2 emissions attributable to households were 15 above 1990 levels in 2004 and that although absolute decoupling occurred between household expenditure and co2 during the uk s switch from coal to gas in the early 1990s since then only slight relative decoupling is evident the proportion of co2 that arises outside uk borders in support of uk consumption is rising and reducing these emissions is particularly problematic in a global trading system investigation into the carbon footprint of different segments of the uk population shows wide variation the segment with the highest carbon footprint emits 64 more co2 than the segment with the lowest results show that recreation and leisure are responsible for over one quarter of co2 emissions in a typical uk household in 2004 we conclude that expanding lifestyle aspirations are significant factors in driving household co2 emissions but the study also emphasizes that attention must be paid to the infrastructures and institutions that result in considerable amounts of co2 being locked up in basic household activities through which people meet their everyday needs for subsistence protection and communication with family and friends the findings highlight the sheer scale of the challenge facing uk policy makers and suggest that policies should be targeted towards segments of society responsible for the highest carbon footprints

factor demand technical change and inter fuel substitution in africa abstract the translog production function has been widely used in applied production analysis due to its flexibility and superiority over other functional forms this study develops a translog production function for a group of african countries the random effects model is estimated using generalized least squares estimator the main findings are first output in africa is driven by a more intensive use of petroleum and electricity and to a lesser extent capital labor and coal relative to technological progress second african production technology exhibits increasing returns to scale suggesting a path towards market entry barriers third technical change is scale biased and factor augmenting albeit very slow fourth all energy inputs are substitutes indicating africa s potential to proportionally switch towards cleaner fuels without adversely affecting economic growth finally and perhaps more generally the study reinforces the assertion that imposing restrictions like homotheticity homogeneity or separability on the production technology is unrealistic and should rather be a testable hypothesis within any applied analysis in view of the documented findings relevant implications for africa are discussed

turning lights into flights estimating direct and indirect rebound effects for uk households energy efficiency improvements by households lead to rebound effects that offset the potential energy and emissions savings direct rebound effects result from increased demand for cheaper energy services while indirect rebound effects result from increased demand for other goods and services that also require energy to provide research to date has focused upon the former but both are important for climate change this study estimates the combined direct and indirect rebound effects from seven measures that improve the energy efficiency of uk dwellings the methodology is based upon estimates of the income elasticity and greenhouse gas ghg intensity of 16 categories of household goods and services and allows for the embodied emissions of the energy efficiency measures themselves as well as the capital cost of the measures rebound effects are measured in ghg terms and relate to the adoption of these measures by an average uk household the study finds that the rebound effects from these measures are typically in the range 5 15 and arise mostly from indirect effects this is largely because expenditure on gas and electricity is more ghg intensive than expenditure on other goods and services however the anticipated shift towards a low carbon electricity system in the uk may lead to much larger rebound effects

an empirical study on the rebound effect considering capital costs technological progress is one of the means of reducing energy usage and carbon dioxide co2 emissions however this reduction in turn leads to a reduction in the real cost of energy services per unit which results in an increase in the demand for energy services therefore a reduction in the anticipated co2 emissions caused by a technological improvement might be partially offset in response to the cost reduction previous studies have referred to this effect as the rebound effect a large amount of empirical evidence on the rebound effect exists however most of these studies assume an exogenous improvement in energy efficiency and thus capital costs that may decrease the magnitude of the rebound effect are not taken into account expressly this paper extends the scope of the research conducted by brannlund et al brannlund r ghalwash t nordstrom j 2007 increased energy efficiency and the rebound effect effects on consumption and emissions energy economics 29 1 17 in terms of two aspects i considering capital costs explicitly as additional capital costs and ii adapting an iterating procedure and estimating the rebound effect using japanese household data as a result of our empirical analysis we conclude that the rebound is approximately 27 however we also find that ignoring additional capital costs leads to an increase in the rebound effect in the case of japanese households the magnitude of the rebound effect increases to approximately 115 moreover our simulation study shows that only a one time iteration of brannlund et al brannlund r ghalwash t nordstrom j 2007 increased energy efficiency and the rebound effect effects on consumption and emissions energy economics 29 1 17 may lead to a biased result

on electricity consumption and economic growth in china abstract the invention and application of the electric power technology triggered the second industrial revolution in human history which marked the human society entered the age of electricity electricity provides the sustainable power for economic and social development with the rapid development of economy the electricity consumption is also increasing the increase of electricity consumption has further promoted the progress of the industrial economy in order to achieve the goal of improving the level of economic development while reducing energy consumption it is necessary to reveal the relationship between electricity consumption and economic growth this study is an extensive overview of the literature surrounding this topic in this paper we focus on the relationship between electricity consumption and economic growth in china we first analyze the general situation of china s electricity consumption and economic development then we explore the relationship between china s electricity consumption and economic growth from three dimensions i e the time dimension the regional dimension and the industrial dimension finally we study the key issues in the research of the relationship between electricity consumption and economic growth including variable selection model construction and results discussion this work suggests that the nature of the nexus in china should and can be explored from a wider perspective by developing a suitable integrated methodological framework

exploring the effects of energy consumption on output per worker a study of albania bulgaria hungary and romania in this article we explore the long run cointegration between output capital and energy consumption in per worker terms for albania bulgaria hungary and romania we use the augmented solow 1956 model and the ardl bounds procedure pesaran et al 2001 to examine the short run and long run effects of energy and capital on output in per worker terms we also conduct causality test using the toda and yamamoto 1995 non causality procedure our results show the existence of long run cointegration between output per worker and energy per worker for all the four countries we find that energy per worker have a dynamic short run positive effect in albania 0 37 bulgaria 0 25 hungary 0 36 and romania 0 68 and a long run positive effect in bulgaria 0 32 and romania 0 63 which duly indicate that energy consumption has a momentous long run effect in these two countries the causality results indicate a unidirectional causation from output per worker to energy per worker for all the four countries and from capital per worker to energy per worker for albania and romania consequently a balance between effective energy consumption and sound energy conservation policies are likely to support economic growth in the four countries

examining the global environmental impact of regional consumption activities part 2 review of input output models for the assessment of environmental impacts embodied in trade this paper offers a detailed review of recently described single and multi region input output models used to assess environmental impacts of internationally traded goods and services it is the second part of a two part contribution in part 1 turner k lenzen m wiedmann t and barrett j in press examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis ecological economics we describe how to enumerate the resource and pollution content of inter regional and inter national trade flows with the aim to illustrate an ideal accounting and modelling framework for the estimation of ecological footprints a large number of such environment economic models have been described but only in the last few years models have emerged that use a more sophisticated multi region multi sector input output framework this has been made possible through improvements in data availability and quality as well as computability we identify six major models that employ multi sector multi region input output analysis in order to calculate environmental impacts embodied in international trade results from the reviewed studies demonstrate that it is important to explicitly consider the production recipe land and energy use as well as emissions in a multi region multi sector and multi directional trade model with global coverage and detailed sector disaggregation only then reliable figures for indicators of impacts embodied in trade such as the ecological footprint can be derived

evidence of direct and indirect rebound effect in households in eu 27 countries abstract this research estimates the direct and indirect rebound effect of energy efficiency in households for the eu 27 countries the first twenty seven member states of the european union a hybrid methodology that combines econometric estimates environmental extended input output analysis and re spending models has been developed although most of the economies present values below 100 there are seven countries situated above this critical threshold by weighting individual estimates by gdp an average value for the overall eu 27 economy has been found between 73 62 and 81 16 these results suggest that the energy policy at the european level should be rethought if efficiency measures pursue reducing energy consumption and tackling climate change

weak separability and the estimation of elasticities in multistage demand systems the necessary conditions for multistage budgeting to be at least approximately justified are reviewed and the plausibility of these assumptions i e weak separability and low variability of price indices with utility level are discussed using no further assumptions simple relationships between expenditure and price elasticities in different budgeting levels are derived these results are applied to a three stage model for swedish food consumption and it is shown that the assumptions are not inappropriate restricting the analysis to the last stage of a multistage budgeting process is also shown to lead to considerable errors which could well have policy consequences

conditional and unconditional food demand elasticities in a dynamic multistage demand system this paper estimates conditional and unconditional demand elasticities in a three stage analysis of consumer demand for food and non food items in greece a dynamic version of the aids model is specified and estimated and full system misspecification tests applied correction formulas for price and expenditure elasticities are used to calculate unconditional elasticities from conditional demand sub systems all food items rank as price inelastic deviations between the calculated conditional and unconditional price and expenditure elasticities are found to be significant demonstrating the importance of correcting conditional elasticities before they can be used for policy purposes or welfare analyses

causal independence between energy consumption and economic growth in liberia evidence from a non parametric bootstrapped causality test abstract this contribution investigates causal interdependence between energy consumption and economic growth in liberia and proposes application of a bootstrap methodology to better reflect causality employment is incorporated as additional variable the study demonstrates evidence of distinct bidirectional granger causality between energy consumption and economic growth additionally the results show that employment in liberia granger causes economic growth and apply irrespective of the short run or long run evidence from a monte carlo experiment reveals that the asymptotic granger causality test suffers size distortion problem for liberian data suggesting that the bootstrap technique employed in this study is more appropriate given the empirical results implications are that energy expansion policies like energy subsidy or low energy tariff for instance would be necessary to cope with demand exerted as a result of economic growth in liberia furthermore liberia might have the performance of its employment generation on the economy partly determined by adequate energy therefore it seems fully justified that a quick shift towards energy production based on clean energy sources may significantly slow down economic growth in liberia hence the government s target to implement a long term strategy to make liberia a carbon neutral country and eventually less carbon dependent by 2050 is understandable

electricity consumption and economic growth in algeria a multivariate causality analysis in the presence of structural change this article addresses the issue of electricity consumption petroleum price and economic growth in algeria the primary objective is to investigate and analyze the causal relationship between electricity consumption ec brent oil price bop and economic growth gdp for algeria over the period of 1971 2010 to examine short run long run and joint causality relationships we used a multivariate cointegration approach based on the recent advances in time series econometrics e g zivot andrews test gregory hansen cointegration test vector error correction models vecm the empirical results show that there is evidence of short run and a strong long run bi directional causal relationship between ec and real gdp in algeria findings indicate also the absence of causal relationship between bop and ec our empirical findings support the idea that there a link between electricity consumption and economic growth and disproves the neo classical assumption referred to as the neutrality hypothesis

energy consumption real income and temporal causality results from a multi country study based on cointegration and error correction modelling techniques abstract unlike previous studies on the causal relationship between energy consumption and economic growth this paper illustrates how the finding of cointegration i e long term equilibrium relationship between these variables may be used in testing granger causality based on the most recent johansen s multivariate cointegration tests preceded by various unit root or non stationarity tests we test for cointegration between total energy consumption and real income of six asian economies india pakistan malaysia singapore indonesia and the philippines non rejection of cointegration between variables rules out granger non causality and imples at least one way of granger causality either unidirectional or bidirectionial secondly by using a dynamic vector error correction model we then analyse the direction of granger causation and hence the within sample granger exogeneity or endogeneity of each of the variables thirdly the relative strength of the causality is gauged through the dynamic variance decomposition technique by decomposing the total impact of an unanticipated shock to each of the variables beyond the sample period into proportions attributable to shocks in the other variables including its own in the bivariate system results based on these tools of methodology indicate that while all pair wise relationships shared common univariate integrational properties only relationships for three countries india pakistan and indonesia were cointegrated for these countries temporal causality results were mixed with unidirectional causality from energy to income for india exactly the reverse for indonesia and mutual causality for pakistan the vdcs were not inconsistent with these results and provided us with an additional insight as to the relatively more dominant direction of causation in pakistan simple bivariate vector autoregressive models for the three non cointegrated systems did not indicate any direction of causality significantly in either direction

tests for parameter instability in regressions with i 1 processes this article derives the large sample distributions of lagrange multiplier lm tests for parameter instability against several alternatives of interest in the context of cointegrated regression models the fully modified estimator of phillips and hansen is extended to cover general models with stochastic and deterministic trends the test statistics considered include the supf test of quandt as well as the lm tests of nyblom and of nabeya and tanaka it is found that the asymptotic distributions depend on the nature of the regressor processes that is if the regressors are stochastic or deterministic trends the distributions are noticeably different from the distributions when the data are weakly dependent it is also found that the lack of cointegration is a special case of the alternative hypothesis considered an unstable intercept so the tests proposed here may also be viewed as a test of the null of cointegration against the alternative of no cointegration the tests are applied to three data se

energy consumption and gdp causality relationship in g 7 countries and emerging markets abstract the causality relationship between energy consumption and income is a well studied topic in energy economics this paper studies the time series properties of energy consumption and gdp and reexamines the causality relationship between the two series in the top 10 emerging markets excluding china due to lack of data and g 7 countries we discover bi directional causality in argentina causality running from gdp to energy consumption in italy and korea and from energy consumption to gdp in turkey france germany and japan hence energy conservation may harm economic growth in the last four countries

technology invention and diffusion in residential energy consumption a stochastic frontier approach traditional large appliances absorb a large share of residential electricity consumption and represent important targets of energy policy strategies aimed at achieving energy security despite being characterized by rather mature technologies this group of appliances still offers large potential in terms of efficiency gains due to their pervasive diffusion in this paper we analyse the electricity consumption of a set of four traditional white goods in a panel of ten eu countries observed over 21 years 1990 2010 with the aim of disentangling the amount of technical efficiency from the overall energy saving the technical efficiency trend is modelled through a set of technology components representing both the invention and adoption process by the means of specific patents weighted by production and bilateral import flows which allows to overcome the rigid stochastic frontier framework in modelling the effect of technical change our results show that the derived energy demand and inefficiency trends are both related to changes in the amount of available technology embodied in energy efficient appliances the effect is significant both in its domestic and international components and suggests an active role of innovation and trade policies for achieving efficiency targets which directly impact the amount of electricity consumed by households

an investigation of co integration and causality between energy consumption and economic activity in taiwan applying hsiao a version of the granger causality method this paper examines the causality between energy and gnp and energy and employment by applying recently developed techniques of co integration and hsiao s version of the granger causality to taiwanese data for the 1955 1993 period the phillips perron tests reveal that the series with the exception of gnp are not stationary and therefore differencing is performed to secure stationarity the study finds causality running from gdp to energy consumption without feedback in taiwan it is also found that causality runs from gdp to energy but not vice versa

energy consumption prices and economic growth in three ssa countries a comparative study in this paper we examine the causal relationship between energy consumption and economic growth in three sub saharan african countries namely south africa kenya and congo drc we incorporate prices as an intermittent variable in a bivariate setting between energy consumption and economic growth thereby creating a simple trivariate framework using the ardl bounds testing procedure we find that the causality between energy consumption and economic growth varies significantly across the countries under study the results show that for south africa and kenya there is a unidirectional causal flow from energy consumption to economic growth however for congo drc it is economic growth that drives energy consumption these findings have important policy implications insofar as energy conservation policies are concerned in the case of congo drc for example the implementation of energy conservation policies may not significantly affect economic growth because the country s economy is not entirely energy dependent however for south africa and kenya there is a need for more energy supply augmentations in order to cope with the long run energy demand in the short run however the two countries should explore more efficient and cost effective sources of energy in order to address the energy dependency problem

electricity consumption employment and real income in australia evidence from multivariate granger causality tests this paper examines the relationship between electricity consumption employment and real income in australia within a cointegration and causality framework we find that electricity consumption employment and real income are cointegrated and that in the long run employment and real income granger cause electricity consumption while in the short run there is weak unidirectional granger causality running from income to electricity consumption and from income to employment

estimating direct and indirect rebound effects for u s households with input output analysis part 2 simulation abstract this is the second part of a two part paper that integrates economic and industrial ecology methods to estimate the indirect rebound effect from residential energy efficiency investments we apply the model developed in part one to simulate the indirect rebound given an estimate of the direct rebound using a 2002 environmentally extended input output model and the 2004 consumer expenditure survey in 2002 for the u s we find an indirect rebound of 5 15 in primary energy and co 2 e emissions assuming a 10 direct rebound depending on the fuel saved with efficiency and household income the indirect rebound can be as high as 30 40 in no x or so 2 emissions for efficiency in natural gas services the substitution effect modeled in part one is small in most cases and we discuss appropriate applications for proportional or income elasticity spending assumptions large indirect rebound effects occur as the u s electric grid becomes less carbon intensive in households with large transportation demands or as energy prices increase even in extreme cases there is limited evidence for backfire or a rebound effect greater than 100 enacting pollution taxes or auctioned permits that internalize the externalities of energy use would ensure that rebound effects unambiguously increase consumers welfare

what if consumers decided to all go green environmental rebound effects from consumption decisions shifting consumer preferences towards green consumption is promoted by many governments and environmental groups rebound effects which reduce the effectiveness of such actions are estimated for cost saving green consumption choices using australian data cases examined are reduced vehicle use reduced electricity use changing to smaller passenger vehicles and utilising fluorescent lighting it is found that if rebound effects are ignored when evaluating green consumption environmental benefits will be overstated by around 20 for reduced vehicle use and 7 for reduced electricity use rebound effects are higher and environmental benefits lower when more efficient vehicles or lighting are utilised rather than simple conservation actions of forgoing use in addition lower income households have higher rebound effects suggesting that environmental policy directed at changing consumer behaviour is most effective when targeted at high income households an inherent trade off between economic and environmental benefits of green consumption choices is demonstrated the size of the rebound effect and the observed variation with household income is attributed to life cycle analysis lca methodologies associated with the calculation of embodied ghg emissions of consumption goods these results should be therefore be interpreted as the minimum rebound effect to include in policy evaluation

achieving low carbon urban passenger transport in china insights from the heterogeneous rebound effect abstract the rapid increase in energy consumption and carbon emissions in china s passenger transportation sector threatens both the environment and the nation s energy security energy efficiency improvements leading to lower fuel consumption are therefore of considerable interest to policymakers trying to achieve low carbon travel however it is well established that higher miles per gallon efficiencies can by reducing the costs of travel lead to some level of increased personal travel the so called rebound effect this paper describes an empirical study to measure the size and also the variability in this effect at the provincial level and what this variability implies for a carbon tax policy this rebound effect is quantified using a two stage almost ideal demand system aids model a backfire effect i e the rebound is 100 is observed in urban passenger transport with disparities in the size of the rebound effect ranging from 114 to 153 among china s provinces the differences in economic development as well as related differences in consumers behavior especially in the behavior of marginal consumers have contributed to this heterogeneity with a larger carbon tax more than 110yuan tonne needed in richer provinces such as jiangsu zhejiang guangdong and fujian in order to bring about similar levels of carbon reductions nationwide

setting the standard a framework for evaluating the cost effectiveness of building energy standards abstract the adoption rate and stringency of building energy standards in the u s have been increasing since the mid 1990s as a result of the energy policy act mandate of 1992 epact current evidence on the energy savings that accrue from commercial building energy standards is based on engineering simulations which do not account for realized behaviour once a standard is actually adopted this paper uses quasi experimental variation in commercial building energy standard adoptions to estimate their effect on realized electricity consumption and cost effectiveness in states induced by epact to adopt an energy standard where all new nonresidential construction was erected under a commercial standard electricity consumption per service worker is lower by about 12 and total commercial electricity consumption is lower by 10 including early adopters and never adopters to the analysis leads to a downward bias in the treatment effect the realized electricity savings in the epact states represent three quarters of predicted simulated savings and electricity saved in 2010 came at a cost of approximately 7 7 cents per kwh

empirical estimates of the direct rebound effect a review beginning with william stanley jevons in 1865 a number of authors have claimed that economically justified energy efficiency improvements will increase rather than reduce energy consumption jevons paradox is extremely difficult to test empirically but could have profound implications for energy and climate policy this paper summarises and critiques the arguments and evidence that have been cited in support of jevons paradox focusing in particular on the work of len brookes and harry saunders it identifies some empirical and theoretical weaknesses in these arguments highlights the questions they raise for economic orthodoxy and points to some interesting parallels between these arguments and those used by the biophysical school of ecological economics while the evidence in favour of jevons paradox is far from conclusive it does suggest that economy wide rebound effects are larger than is conventionally assumed and that energy plays a more important role in driving productivity improvements and economic growth than is conventionally assumed 2008 elsevier ltd all rights reserved

an improved approach to estimate direct rebound effect by incorporating energy efficiency a revisit of china s industrial energy demand abstract the rebound effect or the response to energy efficiency improvement has drawn considerable attention from economists and policymakers however the magnitude remains quite controversial because of the differences in the definitions and methods being used originating from the definition of direct rebound effect we develop an improved approach incorporating energy efficiency the main advantages of the proposed approach are twofold first it enables us to estimate the demand elasticity of useful energy service with respect to energy service price the estimates are more consistent with the definition of rebound effect and are more effective second it decomposes direct rebound effect into substitution and output channels enabling us to further understand the microeconomic mechanisms applying this method we assess the direct energy rebound effect in china s industrial sectors we find that the direct rebound effect for the industry is 37 0 and the substitution and output channels contribute to 13 1 and 23 9 respectively substantial variations in the magnitudes and mechanisms occur by sector for heavy industry most energy rebound is induced by output expansion because of its sizeable cost decrease from efficiency improvements unlike heavy industry most energy rebound in light industry comes from substituting energy service for other inputs because firms in light industry are more flexible in adjusting production inputs our results provide evidences for the importance of energy efficiency measures and highlight the necessity of differentiated measures according to the sectoral characteristics

living up to expectations estimating direct and indirect rebound effects for uk households this study estimates the combined direct and indirect rebound effects from various types of energy efficiency improvement by uk households in contrast to most studies of this topic we base our estimates on cross price elasticities and therefore capture both the income and substitution effects of energy efficiency improvements our approach involves estimating a household demand model to obtain price and expenditure elasticities of different goods and services utilising a multiregional input output model to estimate the ghg emission intensities of those goods and services combining the two to estimate direct and indirect rebound effects and decomposing those effects to reveal the relative contribution of different mechanisms and commodities we estimate that the total rebound effects are 41 for measures that improve the efficiency of domestic gas use 48 for electricity use and 78 for vehicle fuel use the primary source of this rebound is increased consumption of the cheaper energy service i e direct rebound and this is primarily driven by substitution effects our results suggest that the neglect of substitution effects may have led prior research to underestimate the total rebound effect however we provide a number of caveats to this conclusion as well as indicating priorities for future research

can private motor vehicle augmenting technical progress reduce household and total fuel use abstract this paper demonstrates the importance of modelling energy intensive household services in general and private transportation in particular as combinations of energy and other inputs initially a partial equilibrium approach is used to analyse private transport consumption as a self produced commodity formed by household vehicle and fuel use we particularly focus on the impact of private vehicle augmenting technical progress in this framework we show that household fuel use will fall if it is easier to substitute between vehicles and fuel in the household production of private transport services than it is to substitute between private transport and the composite of all other goods in overall household consumption the analysis is then extended through computable general equilibrium simulation to investigate the wider implications of similar efficiency improvements when intermediate demand prices and nominal income are endogenous the subsequent reduction in the price of private transport service not observable in market prices allows the wage measured relative to the cpi to rise whilst the wage relative to the price of foreign goods falls this simultaneously increases uk international competitiveness encouraging increased exports and reduced import penetration whilst allowing employment to rise this provides an additional supply side stimulus to production employment and household income

energy and economic growth in the usa a multivariate approach abstract this paper examines the causal relationship between gdp and energy use for the period 1947 90 in the usa the relationship between energy use and economic growth has been examined by both biophysical and neoclassical economists in particular several studies have tested for the presence of a causal relationship in the granger sense between energy use and economic growth however these tests do not allow a direct test of the relative explanatory powers of the neoclassical and biophysical models a multivariate adaptation of the test vector autoregression var does allow such a test a var of gdp energy use capital stock and employment is estimated and granger tests for causal relationships between the variables are carried out although there is no evidence that gross energy use granger causes gdp a measure of final energy use adjusted for changing fuel composition does granger cause gdp

energy growth conundrum in energy exporting and importing countries evidence from heterogeneous panel methods robust to cross sectional dependence abstract this article uses the panel methods for energy exporting and importing countries that discuss the heterogeneity and cross sectional dependence in investigating the linkages between energy consumption and economic growth the findings of the study suggest that the energy consumption is an important input not only in the energy importing but also in energy exporting countries furthermore the results of the present paper suggest that the policy options should be different for the different countries in the back drop of heterogeneous slope coefficients

liability dollarization exchange market pressure and fear of floating empirical evidence for turkey the objective of this article is to examine the relationship between liability dollarization and the exchange market pressure emp in turkey within an autoregressive distributed lag ardl and granger causality framework using monthly data from 1991 12 to 2006 08 the findings suggest that there exists a long term equilibrium relationship between emp and liability dollarization where liability dollarization granger causes emp both in the short and long run with no evidence of reverse causality this suggests that the predominance of foreign currency liabilities in the banks balance sheets in turkey induces a selling pressure in the exchange market as well as a fear of floating

dynamic specification and misspecification in systems of demand equations a testing strategy for model selection dynamic specification and misspecification in systems of demand equations a testing strategy for model selection

frontiers in the economics of energy efficiency abstract energy efficiency has become an essential instrument to obtain effective greenhouse gas mitigation and reduced energy dependence this introductory article contextualizes the contributions of the supplemental issue by showing the new setting for energy efficiency economics and policy discussing the role of price instruments to promote energy savings presenting new approaches for energy efficiency policies and placing energy efficiency within a wider energy and environmental framework

the rebound effect microeconomic definitions limitations and extensions abstract the rebound effect results in part from an increased consumption of energy services following an improvement in the technical efficiency of delivering those services this increased consumption offsets the energy savings that may otherwise be achieved if the rebound effect is sufficiently large it may undermine the rationale for policy measures to encourage energy efficiency the nature and magnitude of the rebound effect is the focus of long running dispute with energy economics this paper brings together previous theoretical work to provide a rigorous definition of the rebound effect to clarify key conceptual issues and to highlight the potential consequences of various assumptions for empirical estimates of the effect the focus is on the direct rebound effect for a single energy service indirect and economy wide rebound effects are not discussed beginning with khazzoom s original definition of the rebound effect we expose the limitations of three simplifying assumptions on which this definition is based first we argue that capital costs form an important part of the total cost of providing energy services and that empirical studies that estimate rebound effects from variations in energy prices are prone to bias second we argue that energy efficiency should be treated as an endogenous variable and that empirical estimates of the rebound effect may need to apply a simultaneous equation model to capture the joint determination of key variables third we explore the implications of the opportunity costs of time in the production of energy services and highlight the consequences for energy use of improved time efficiency the influence of time costs on the rebound effect and the existence of a parallel rebound effect with respect to time each of these considerations serves to highlight the difficulties in obtaining reliable estimates of the rebound effect and the different factors that need to be controlled for we discuss the implications of these findings for econometric studies and argue that several existing studies may overestimate the magnitude of the effect

beyond energy efficiency and individual behaviours policy insights from social practice theories abstract this conceptual paper deals ultimately with the intricate relationships existing between quantity and quality in the field of energy conservation policies it discusses how current policy approaches to energy conservation have energy efficiency and individuals behavioural change as principle target it then argues that their limited impacts derive largely from how they are principally informed by quantitative estimates of reductions in energy inputs and neglect how qualitative changes generated in the energy outputs can either offset these reductions e g more energy efficient motors can enable the production of larger cars consuming more energy or cause higher savings e g smaller cars can consume less energy even with less efficient motors the paper also explains these limited impacts in terms of overly simplistic cause effect relationships assumed to exist between given exogenous factors e g provision of information price signals etc and individuals behaviours it then shows how radically alternative policies for energy conservation can target qualitative changes and re organisations in energy outputs in doing so it takes social practice theories as theoretical background finally it discusses the potentially very high impacts and the alternative character of policies informed by these theories and shows how and where they indicate to intervene

how large is the economy wide rebound effect abstract the size of the economy wide rebound effect is crucial for estimating the contribution that energy efficiency improvements can make to reducing greenhouse gas emissions and for understanding the drivers of energy use economy wide rebound from an energy efficiency improvement includes changes in the use of energy to produce complementary and substitute goods or inputs and other flow on effects that affect energy use across the economy as well as the direct rebound due to energy users using more of an energy service that has become less costly as result of improved energy efficiency jevons first argued in 1865 that improvements in energy efficiency increase total energy use and in recent decades researchers have argued for and against this backfire hypothesis theory provides some guidance on the factors affecting rebound but does not impose much constraint on the range of possible responses historical evidence suggests that the improved energy efficiency of recent technology has not reduced energy use because consumption has shifted to more energy intensive goods and services simulations and econometric research have produced mixed results some recent general equilibrium studies find large rebound around 100 but more research is needed to confirm or refute these findings

is the energy efficiency improvement conducive to the saving of residential electricity consumption in china abstract the urbanization process and the continuous upgrading of consumption structure have driven the rapid growth of china s residential electricity consumption making it urgent to strengthen energy conservation and emission reduction in the residential sector improving the efficiency of electricity use is an effective method to reduce the consumption of electricity but the rebound effect re also emerges is it still conducive to saving electricity in response to this question this article selects the relevant data in china during 2010 2016 to construct the panel linear model and the panel threshold model respectively to analyze the direct re of residential electricity consumption the results show that 1 the average re of china s residential electricity use is 84 94 it indicates that energy efficiency improvement can lower residents electricity use but only 15 06 of the expected target can be achieved 2 the direct re in high income regime pgdp 76023 67 and low income regime pgdp 76023 67 is 59 15 and 80 79 respectively meaning that energy efficiency measures in the high income regime are more effective 3 the direct re in the high population regime pop 6083 28 and low population regime pop 6083 68 is 120 09 and 83 91 respectively indicating that energy efficiency improvement in the high population regime has intensified residents electricity consumption therefore to maximum energy saving effect the government should take the inter provincial heterogeneity of the re into consideration and introduce market oriented measures such as price and tax to restrain it

missing carbon reductions exploring rebound and backfire effects in uk households households are expected to play a pivotal role in reducing the uk s greenhouse gas ghg emissions and the uk government is encouraging specific household actions to help meet its targets however due to the rebound effect only a portion of the ghg emission reductions estimated by simple engineering calculations are generally achieved in practice for example replacing short car journeys by walking or cycling reduces consumption of motor fuels but this frees up money that may be spent on for example purchasing extra clothes or flying on vacation alternatively the money may be put into savings since all of these options lead to ghg emissions total ghg savings may be less than anticipated indeed in some instances emissions may increase a phenomenon known as backfire we estimate that the rebound effect for a combination of three abatement actions by uk households is approximately 34 targeting re spending on goods and services with a low ghg intensity reduces this to a minimum of around 12 while re spending on goods and services with a high ghg intensity leads to backfire our study highlights the importance of shifting consumption to lower ghg intensive categories and investing in low carbon investments

economic energy and greenhouse emissions impacts of some consumer choice technology and government outlay options abstract the impacts of selected spending options in the australian economy are determined in terms of energy consumption greenhouse gas emissions and a range of economic parameters six case studies of one current practice and one alternative environmentally motivated spending option are carried out describing consumer choices technologies and government outlays the assessment method is based on input output theory and as such enables both the direct and indirect effects of spending to be quantified in general the results indicate that pro environmental objectives such as reductions in energy consumption and greenhouse gas emissions are compatible with broad socio economic benefits such as increases in employment and income and reductions in imports

a multivariate cointegration analysis of the role of energy in the us macroeconomy abstract this paper extends my previous analysis of the causal relationship of gdp and energy use in the usa in the post war period a majority of the relevant variables are integrated justifying a cointegration analysis the results show that cointegration does occur and that energy input cannot be excluded from the cointegration space the results are plausible in terms of macroeconomic dynamics the results are similar to my previous granger causality results and contradict claims in the literature based on bivariate models that there is no cointegration between energy and output

presidential address issuers underwriter syndicates and aftermarket transparency i model strategic interaction among issuers underwriters retail investors and institutional investors when the secondary market has limited price transparency search costs for retail investors lead to price dispersion in the secondary market while the price for institutional investors is infinitely elastic because retail distribution capacity is assumed to be limited for each underwriter dealer bertrand competition breaks down in the primary market and new issues are underpriced in equilibrium syndicates emerge in which underwriters bid symmetrically with quantities allocated internally to efficiently utilize retail distribution capacity underwriters and dealers appear to compete vigorously for new security issues and yet also appear to earn high profits in this business what value are they generating that warrants high compensation are there obstacles that keep this value from flowing through to security issuers despite apparently fierce competition in the market for these financial services the model in this paper combines three elements a lack of price transparency in the secondary market limited retail distribution capacity and bertrand competition in the primary market dealer underwriters bid for new securities as bertrand competitors they then sell these securities in a secondary market with limited price transparency retail investors face costs of gathering price information while institutional investors who are frequent repeat customers do not this leads to price dispersion in the secondary market where some retail customers get attractive terms and others do not the rents that accrue to broker dealers who can sell to retail customers are limited by their distribution capacity this in turn limits their incentives to bid aggressively in the primary market in equilibrium they share the new issues through arrangements that resemble underwriter syndicates new issues are underpriced relative to average subsequent transactions prices the results illustrate how noncompetitive outcomes in the secondary market can lead to breakdowns in competition in the primary market and why issuers may have little to gain from improved price transparency while more transparency limits the rents dealers can extract from retail investors in the secondary market the lost rents are not absorbed by issuers mechanisms green is from the tepper school of business carnegie mellon university i would like to thank my long time colleagues and friends burton hollifield uday rajan and mike trick as well as the doctoral students in 47 724 for patiently listening to me think out loud about these issues roni israelov and bruce carlin provided helpful comments on an earlier draft

dealer intermediation and price behavior in the aftermarket for new bond issues municipal bonds trade in decentralized broker dealer markets and are underpriced when issued but unlike equities the average price rises slowly over several days newly issued municipal bonds have high levels of price dispersion and the average price rises because the mix of trade sizes changes over time while large trades occur close to the reoffering price small trades occur between the reoffering price to as much as 5 above the reoffering price using a mixed distribution model we quantify the losses uninformed traders or issuers give up to broker dealers

climate change mitigation potential of norwegian households and the rebound effect abstract an increasing number of studies show that efficiency improvements alone will not be sufficient to attain the substantial emission reductions needed to mitigate global warming to a target of 2 c consumption side changes are likely to be needed to achieve sufficient emission reductions the united nations emphasize the importance of developed countries taking the lead in lowering emissions to achieve the sustainable development goals this paper assess to what extent norwegian households can lower their carbon footprint consistent with territorial emission reductions towards the 2 c target of global warming through implementing a set of behavioral actions we evaluate the efficacy of the set of actions both initially and after considering rebound effects a multiregional environmentally extended input output database is linked with the norwegian consumer expenditure survey to analyze both average and marginal expenditure per unit of increased income further linear programming is applied to examine the changes needed by households to reach different emission reduction targets we find that households implementing the full set of actions without re spending can obtain a 58 decrease in their carbon footprint when accounting for the effect of re spending this reduction drops to 24 35 which is not within the requirements of the 2 c target the optimization analysis suggests households can achieve reductions up to 45 by restricting re spending to specific goods and services this indicates that curbing the rebound effect is key to achieving real reductions in household carbon footprints we show that changing consumption patterns can significantly contribute to lowering anthropogenic greenhouse gas emissions without compromising the level of economic activity

energy consumption employment output and temporal causality evidence from taiwan based on cointegration and error correction modelling techniques in this study a cointegration analysis and a vector autoregressive model var are used to examine the causal relationships among energy consumption employment and output for taiwan over the period january 1982 to november 1997 johansen 1988 and johansen and juselius 1990 cointegration test result indicates these three variables are cointegrated with one cointegrating vector the results from granger causality tests based on vector error correction models vecm suggest bidirectional grange causality for employment output and employment energy consumption but only unidirectional causality running from energy consumption to output furthermore the impulse responses and variance decompositions are also incorporated into the analysis the results from impulsive response and variance decomposition analysis tell similar stories energy consumption appears to have led to output growth in taiwan over this period the policy implication of this finding is that energy conservation will restrain the outpu

interactions in swiss households energy demand a holistic approach abstract this article analyzes the interactions and possible trade offs between direct energy consumption and embodied energy requirement of households in switzerland in order to assess the net impacts of standard energy policies focusing exclusively on direct energy use direct and embodied energy demand of swiss households are estimated by combining consumption data of a national expenditure survey with data on energy intensity from life cycle analysis using a system of equations and an instrumental variable approach we find that both domains are driven by same determinants but that there is no evidence for significant substitution between them we also find an increasing effect of income on both domains with particularly important effects on embodied energy from a policy perspective our findings highlight a concern that economic growth could bring about an increasing global energy demand through energy requirement for non energy commodities however the wide spread policies targeting direct energy are unlikely to cause a substantial shift in household consumption to embodied energy

reform of refined oil product pricing mechanism and energy rebound effect for passenger transportation in china new huadu business school research fund china sustainable energy program of the energy foundation g 1203 15828 national social science foundation of china 12zd059 ministry of education 10gbj013

who rebounds most estimating direct and indirect rebound effects for different uk socioeconomic groups this study estimates the combined direct and indirect rebound effects from various types of energy efficiency improvement and behavioural change by uk households and explores how these effects vary with total expenditure the methodology is based upon estimates of the expenditure elasticity and ghg intensity of 16 categories of goods and services and allows for the capital cost and embodied emissions of the energy efficiency measures themselves the study finds that rebound effects in ghg terms are modest 0 32 for measures affecting domestic energy use larger 25 65 for measures affecting vehicle fuel use and very large 66 106 for measures that reduce food waste furthermore measures undertaken by low income households are associated with the largest rebound effects with direct emissions forming a larger proportion of the total rebound effect for those households measures that are subsidised or affect highly taxed energy commodities may be less effective in reducing aggregate emissions these findings highlight the importance of allowing for rebound effects within policy appraisals as well as reinforcing the case for economy wide carbon pricing

examining the global environmental impact of regional consumption activities part 1 a technical note on combining input output and ecological footprint analysis in recent years there have been a number of attempts to develop a more comprehensive approach to the issue of measuring resource use and or pollution generation embodied in trade flows including contributions that combine input output techniques and ecological footprint analysis in this two part paper we describe how to enumerate the resource and or pollution content of inter regional and inter national trade flows part 1 and we present a literature review of recent methodological and empirical developments part 2 it is straightforward in principle to extend the basic input output approach to capture international trade flows however in practice problems of data availability and compatibility and of computability of extended input output matrices mean that simplifying assumptions are generally applied but with the implications of these assumptions often not made fully explicit what appears to be absent from previous applications is an account of the analytical method by which ecological footprints should ideally be estimated in an international input output accounting analysis this allows an explicit analysis of the problems that prevent the application of the full method and identification of the most appropriate short cut methods in a transparent way the objective of this paper is to provide such an account

electricity consumption and economic growth in india abstract this paper tries to examine the granger causality between electricity consumption per capita and gross domestic product gdp per capita for india using annual data covering the period 1950 51 to 1996 97 phillips perron tests reveal that both the series after logarithmic transformation are non stationary and individually integrated of order one this study finds the absence of long run equilibrium relationship among the variables but there exists unidirectional granger causality running from economic growth to electricity consumption without any feedback effect so electricity conservation policies can be initiated without deteriorating economic side effects

rebound effect of transportation considering additional capital costs and input output relationships the role of subsistence consumption and unmet demand abstract the anticipated carbon mitigation through energy saving technology progress might be partially or even totally offset due to rebound effect a better understanding of rebound effect especially the underling mechanisms has important implications for energy efficiency policies to achieve the goal of sustainability previous studies usually ignore additional capital costs for adopting energy efficient equipment and indirect carbon emissions for providing new consumption bundles also the precise mechanisms of how living standard affects rebound effect are unknown using almost ideal demand system aids model and input output relationships among sectors this paper builds a method to estimate the rebound effect that allows for additional capital costs and carbon emission changes of all other goods and services due to backward forward linkages we find that rebound effect is over 100 for transportation in rural china even though additional capital costs would indeed reduce the magnitude and the results are quite robust to alternative settings as for the mechanisms rebound effect is divided into substitution and income channels by slutsky decomposition here we show that both of these two channels are dependent on living standard because of subsistence consumption and unmet demand carbon emissions of poor households will rebound more through income channel of unmet demand while rich households usually do not restricted by subsistence consumption and thus through substitution channel rebound of carbon emissions would be larger for rich households the opposite directions of mechanisms dig more information about the nonlinearity of rebound effect to income levels furthermore given the estimating results this paper gains several insights in terms of welfare benefits rather than just focuses on carbon reduction

co integration and causality testing of the energy gdp relationship a cross country study in this paper the energy gdp relationship in per capita terms is analysed for a sample of 16 countries over the time period 1950 51 to 1984 85 co integration theory is first used to test whether a long run equilibrium relation exists between the two variables after co integration has been established causality measures are constructed to quantify various types of feedback between energy and gdp for each country it is then examined whether the causality measures are longitudinally related to certain basic economic indicators of the countries in the sample

the relationship between energy consumption energy prices and economic growth time series evidence from asian developing countries this paper estimates the causal relationships between energy consumption and income for india indonesia the philippines and thailand using cointegration and error correction modelling techniques the results indicate that in the short run unidirectional granger causality runs from energy to income for india and indonesia while bidirectional granger causality runs from energy to income for thailand and the philippines in the case of thailand and the philippines energy income and prices are mutually causal the study results do not support the view that energy and income are neutral with respect to each other with the exception of indonesia and india where neutrality is observed in the short run c 2000 elsevier science b v all rights reserved jel classifications c22 q43 q48

default risk cannot explain the muni puzzle evidence from municipal bonds that are secured by u s treasury obligations fama 1977 and miller 1977 predict that one minus the corporate tax rate will equate after tax yields from comparable taxable and tax exempt bonds empirical evidence shows that long term tax exempt yields are higher than theory predicts two popular explanations for this empirical puzzle are that relative to taxable bonds municipal bonds bear more default risk and include costly call options i study u s government secured municipal bond yields which are effectively default free and nonmalleable these municipal yields display the same tendency to be too high i conclude that differential default risk and call options do not explain the municipal bond puzzle article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

assessing the impact of solar pv on domestic electricity consumption exploring the prospect of rebound effects abstract this study examines patterns of electricity use by households in sydney who have installed solar photovoltaic pv technology compared to those who have not in order to assess the impact of government solar incentive schemes and to identify whether conservation or rebound increased consumption effects are associated with rooftop pv findings have significance in determining whether a rebound effect needs to be factored into projected energy carbon savings from solar pv installation at issue is the robustness of carbon mitigation estimates included in future rounds of international climate change agreements as well as local forecasts of future electricity demand affecting the national grid analysis and modelling was undertaken on billing data for the period 2007 2014 on a representative sample of 4819 households the sample comprised three groups households who were early adopters and installed pv under a 60 c kwh gross feed in tariff scheme a group who installed under a 20 c kwh gross feed in scheme and a control group with no pv econometric modelling undertaken on energy consumption behaviour of households with versus without local renewable energy generation revealed that on a kwh basis the rebound effect is estimated to erode up to one fifth of the carbon benefit of renewable energy generated by solar pv

tax subsidized underpricing the market for build america bonds build america bonds babs were issued by municipalities for 20 months as a part of the 2009 fiscal package unlike traditional tax exempt municipals babs are taxable to the holder but the treasury rebates 35 of the coupon to the issuer the stated purpose was to provide municipalities access to a more liquid market including foreign tax exempt and tax deferred investors we find babs do not exhibit greater liquidity than traditional municipals babs are more underpriced initially particularly for interdealer trades babs also show a substitution from underwriter fees toward more underpricing suggesting that the underpricing is a strategic response to the tax subsidy

evaluating the linearized almost ideal demand system linearizing the almost ideal demand system laids by recourse to the stone share weighted price index is common practice two issues are addressed here first scrutiny of the errors in variables implications of the linearization reveals that not only is the sur estimator inconsistent but a consistent iv estimator cannot be constructed second some alternatives to the green alston elasticities specifically designed for the laids model are developed but neither these nor the green alston elasticities are found to have any advantages over the conventional elasticity formulae some errors in the green alston 1990 paper are corrected the inconsistency and elasticity issues are documented by a monte carlo investigation

energy consumption and economic growth evidence from china at both aggregated and disaggregated levels using a neo classical aggregate production model where capital labor and energy are treated as separate inputs this paper tests for the existence and direction of causality between output growth and energy use in china at both aggregated total energy and disaggregated levels as coal oil and electricity consumption using the johansen cointegration technique the empirical findings indicate that there exists long run cointegration among output labor capital and energy use in china at both aggregated and all three disaggregated levels then using a vec specification the short run dynamics of the interested variables are tested indicating that there exists granger causality running from electricity and oil consumption to gdp but does not exist granger causality running from coal and total energy consumption to gdp on the other hand short run granger causality exists from gdp to total energy coal and oil consumption but does not exist from gdp to electricity consumption we thus propose policy suggestions to solve the energy and sustainable development dilemma in china as enhancing energy supply security and guaranteeing energy supply especially in the short run to provide adequate electric power supply and set up national strategic oil reserve enhancing energy efficiency to save energy diversifying energy sources energetically exploiting renewable energy and drawing out corresponding policies and measures and finally in the long run transforming development pattern and cut reliance on resource and energy dependent industries

co2 emissions in australia economic and non economic drivers in the long run abstractaustralia has sustained a relatively high economic growth rate since the 1980s compared to other developed countries per capita co2 emissions tend to be highest amongst oecd countries creating new challenges to cut back emissions towards international standards this research explores the long run dynamics of co2 emissions economic and population growth along with the effects of globalization tested as contributing factors we find economic growth is not emission intensive in australia while energy consumption is emissions intensive second in an environment of increasing population our findings suggest australia needs to be energy efficient at the household level creating appropriate infrastructure for sustainable population growth high population growth and open migration policy can be detrimental in reducing co2 emissions finally we establish globalized environment has been conducive in combating emissions in this respect we establish the beneficial effect of economic globalization

a simple model of the taxable and tax exempt yield curves i examine the anomalous behavior of the taxable and tax exempt yield curves long municipal yields appear too high relative to the equivalent after tax yield that can be earned in treasury or corporate bonds i discuss existing explanations of the problem and propose a simple model that relates the yields of taxable bonds to the yield curve for par tax exempts the ratio of the tax exempt yield to the taxable yield increases with maturity in the model so it is consistent with observed phenomena such as inverted yield curves for taxables and contemporaneous rising yield curves for tax exempts statistical and descriptive comparisons between the yields predicted by the model and observed yields on par bonds that the model has some promise in explaining the apparent anomalies in the behaviors of the two yield curves article published by oxford university press on behalf of the society for financial studies in its journal the review of financial studies

demand for durable and nondurable goods environmental policy and consumer welfare if a tax on energy affects the demand for a nondurable good the stock of a durable good and the proportion of the energy consumption per unit of service of the durable good an integrated approach for investigating consumer demand for durables and nondurables is required the purpose of this paper is to employ the concept of a variable expenditure function with quasi fixed durable goods as arguments in order to derive a demand system for nondurable goods in prices of the nondurables in the stocks of durables and in variable expenditure from the envelope condition desired stocks of durables can be calculated and investment demand for durables can be determined for an application we choose a variable expenditure function based on the almost ideal demand specification and evaluate alternative environmental policy measures using the equivalent variation for comparing the welfare effects