renewable and non renewable energy growth emissions linkages review of emerging trends with policy implications abstract this study is an extension of the previous studies which focused mainly on energy growth nexus but fails to consider the carbon emission implication of this relationship the methodology of the study permits a comprehensive and comparative analysis of existing studies on renewable and non renewable energy growth emission nexus in order to draw some implications for policy and research the survey revealed the extent of the spread of studies across issues time and geographical space countries and regions it also disclosed the range of methodological approaches adopted to analyse the issues over time and the frequency of their use it unravelled the varied findings across countries and regions given the diverse methods employed and specific features of the economies analysed arising from the literature survey this study highlights the existing gaps in the literature and new direction for policy and research the general policy implication of the findings of this study is that pollution effect of energy growth nexus should be taken into consideration in policy formulation for sustainable development further the design of regional and global policies should recognise the fact that energy growth emission linkages varied across countries even in the same region some new direction for research on renewable and non renewable energy growth emission linkages pointed out in this survey includes the following future research on energy growth nexus without considering the pollution impact may not contribute so much to the literature studies should investigate the substitution complementary effects of the energy varieties on growth emission nexus while new methodological contributions are imperative

why do some emerging economies proactively accelerate the adoption of renewable energy abstract this article analyses the determinants of renewable energy consumption in a panel of six major emerging economies namely brazil china india indonesia philippines and turkey that are proactively accelerating the adoption of renewable energy using fully modified ordinary least square fmols dynamic ordinary least square dols and granger causality methods this paper finds that in the long run renewable energy consumption is significantly determined by income and pollutant emission in brazil china india and indonesia while mainly by income in philippines and turkey causal link between renewable energy and income and between renewable energy and pollutant emission are found to be bidirectional in the short run these results suggest that the appropriateness of the efforts undertaken by emerging countries to reduce the carbon intensity by increasing the energy efficiency and substantially increasing the share of renewable in the overall energy mix

market forces and aircraft safety thecaseofthedc 10 the may 25th 1979 chicago dc 10 crash provides the opportunity to test an important proposition in the theory of consumer product safety can market forces provide safety when products are too complex to permit buyer prepurchase inspection this paper combines economic theory with modern finance theory to measure the cost of the crash to shareholders of the plane s manufacturer mcdonnell douglas the results indicate that the dc 10 crash resulted in a 200 million loss to mcdonnell douglas stockholders and that this amount exceeds any reasonable estimate of regulatory or liability costs

co2 emissions energy consumption economic growth and financial development in gcc countries dynamic simultaneous equation models abstract this study investigates the dynamic causal relationships among carbon emissions financial development economic growth and energy consumption for gulf cooperation council gcc countries from 1980 through 2011 annual time series data and an autoregressive distributed lag ardl model are used the main contribution of this paper is that it has investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in gcc countries the results suggest long run and causal relationships among carbon emissions financial development gross domestic product gdp and energy use in all gcc countries except united arab emirates uae moreover there is long run unidirectional causality running from carbon emissions to energy use in the case of saudi arabia uae and qatar furthermore a one way causal relationship from financial development to carbon emissions in the context of uae oman and kuwait is found the evidence suggests that financial systems should take into account environmental aspects in their current operations in these countries the results of this study may be of great importance for policy and decision makers in developing energy policies for gcc countries that contribute to curbing carbon emissions while preserving economic growth

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

cigarette taxes and the master settlement agreement i introduction in 1998 46 states and the four major tobacco companies entered into the master settlement agreement msa which settled litigation brought on behalf of the states to recover medical expenses paid by government insurance agencies for illness brought on by consumption of tobacco products national association of attorneys general 2003 the four remaining states florida minnesota mississippi and texas settled separately with the companies the msa stipulated that the tobacco companies pay the states an estimated 206 billion over the next several years the payments are made annually and are adjusted for the number of cigarettes sold in each state in each year in this sense the msa payment structure resembles an excise tax the strategy of using litigation as an instrument for discouraging consumption of a commodity deemed to be harmful to consumers is becoming more common parmet and daynard 2000 the impact that such litigation has on other tobacco control policies such as excise taxes depends on the extent to which litigation and such policies are substitutable the msa payments could substitute for excise taxes at the state level this may be so to the extent that state legislatures have succeeded in levying socially optimal excise tax rates 1 if so states would be expected to have reduced excise taxes on cigarettes after the settlements were reached similarly one would expect that various tobacco control policies such as workplace smoking bans would be substitutes albeit imperfect ones for state cigarette excise taxes and for penalties resulting from litigation that function as excise taxes alternatively litigation and the resulting settlement may have changed the balance of power between tobacco control advocates and the tobacco manufacturers with the consequence that the settlements and state excise taxes are complements the tobacco industry s influence on federal and state legislatures historically has been an impediment to enacting tobacco control legislation at either federal or state levels kelder and daynard 1997 parmet and daynard 2000 rather than crowd out state excise taxes the msa could have led to crowding in a cursory glance at the data supports the view that litigation changes the balance of power since the msa and four individual state settlements were reached the former in november 1998 and the individual settlements somewhat earlier state legislatures have increasingly looked to state excise taxes on cigarettes as a source of revenue relative to both excise taxes imposed on alcohol and state taxes more generally figure 1 in particular the largest jumps in the mean real state excise tax on cigarettes occurred in 1997 and 2002 in fiscal year 2003 for example state excise tax increases were larger than any other single type of tax including major sources of revenue such as income taxes national governors association and national association of state budget officers 2002 these increases did not coincide with increases in the mean real state excise tax on beer the only year in which real state excise taxes on beer rose was 1998 figure 1 omitted such trends could have been due to factors other than the settlement the goal of our empirical analysis is to assess whether the changes in cigarette excise taxes can be attributed to the settlement when other factors are held constant using pre post as well as state excise taxes on beer as controls in a panel data difference in difference approach the evidence on balance provides support for the view that litigation and cigarette excise taxes are complements which is consistent with changes in the political equilibrium ii data and empirical specification overview we use a panel data difference in difference d d regression design to test whether the litigation substituted for crowd out or complemented crowd in state excise taxes

a dynamic panel study of economic development and the electricity consumption growth nexus abstract this study examines the relationship between electricity consumption and economic growth for 88 countries categorized into four panels based on the world bank income classification high upper middle lower middle and low income within a multivariate panel framework over the period 1990 2006 the larsson et al 2001 panel cointegration test indicates there is a long run equilibrium relationship between real gdp coal consumption real gross fixed capital formation and the labor force for the high upper middle and lower middle income country panels the results from the panel vector error correction models reveal 1 bidirectional causality between electricity consumption and economic growth in both the short and long run for the high income and upper middle income country panels 2 unidirectional causality from electricity consumption to economic growth in the short run but bidirectional causality in the long run for the lower middle income country panel and 3 unidirectional causality from electricity consumption to economic growth for the low income country panel

estimating dynamic demand for cigarettes using panel data the effects of bootlegging taxation and advertising reconsidered abstracct a dynamic demand for cigarette consumption is estimated using pooled data of 46 states over the period 1963 to 1980 a price elasticity of 0 2 and an insignificant income elasticity is found using pooled estimation techniques the bootlegging effect is modeled explicitly using neighboring price the effect is found to be significant two major policy issues are analyzed in light of these new estimates 1 cigarette taxation is found to be an effective tool for generating revenues even though there may be spillover effects to neighboring states where bootlegging is significant 2 the effects of the fairness doctrine act and the advertising ban on cigarette consumption are re examined we find mild support for the effectiveness of subsidized anti smoking messages in reducing cigarette consumption and no support for the thesis that the ban on advertising helps to increase per capita consumption

renewable and non renewable energy use economic growth nexus the case of mena net oil importing countries abstract this study examines the energy use economic growth nexus by disaggregating energy use into two types of energy renewable and non renewable energy use our sample consists of eleven mena net oil importing countries noics during the period 1980 2012 a multivariate panel framework was used to estimate the long run relationship and the panel granger causality tests was employed to assess the causality direction among variables the empirical results provide evidence for long term equilibrium relationship between real gross domestic product gdp renewable energy use non renewable energy use real gross fixed capital formation and labor force the results provide evidence also for positive and statistically significant elasticities moreover the empirical findings from panel error correction model confirm the existence of bidirectional causality between renewable energy use and economic growth and between non renewable energy use and economic growth results that support the feedback hypothesis moreover our empirical findings provide evidence for two way bidirectional causal association in both the short and long run between renewable and non renewable energy use which proves the substitutability and interdependence between these two types of energy sources the policies implications of these results are also proposed and discussed

energy consumption in the us reconsidered evidence across sources and economic sectors abstract this study analyzes the impact of gdp shocks in usa on primary energy consumption and the reverse impact in a comprehensive and novel framework distinguishing by economic sectors commercial industrial residential and transportation and energy source i e total fossil coal natural gas and petroleum nuclear and renewable hydroelectric geothermal and biomass for the period 1973 1 to 2015 2 to this end we apply granger causality analysis through the hatemi j 1 and toda and yamamoto 2 approaches from a time series perspective to evaluate the existence of asymmetries on this bidirectional relationship the empirical results suggest that the impact of gdp on primary energy consumption is heterogeneous and energy source specific and an asymmetric behavior appears among cycles moreover it seems clear that the us economy is highly dependent on petroleum energy consumption the renewable energy sources do not seem to show any relationshipsources seem to show no relationship with economic growth and finally our results suggest that energy consumption in the industrial sector is key to economic growth and is also very sensitive to negative economic shocks

on the causal dynamics between emissions nuclear energy renewable energy and economic growth this paper examines the causal relationship between co2 emissions nuclear energy consumption renewable energy consumption and economic growth for a group of 19 developed and developing countries for the period 1984 2007 using a panel error correction model the long run estimates indicate that there is a statistically significant negative association between nuclear energy consumption and emissions but a statistically significant positive relationship between emissions and renewable energy consumption the results from the panel granger causality tests suggest that in the short run nuclear energy consumption plays an important role in reducing co2 emissions whereas renewable energy consumption does not contribute to reductions in emissions this may be due to the lack of adequate storage technology to overcome intermittent supply problems as a result electricity producers have to rely on emission generating energy sources to meet peak load demand

environmental pollution hydropower energy consumption and economic growth evidence from g7 countries abstract the aim of this study is to examine the relationship among environmental pollution economic growth and hydropower energy consumption in the different regimes of the business cycles for g7 countries over the period of 1961 2013 we used markov switching vector autoregressive ms var and ms granger causality methods to achieve this goal since the traditional methods examine the causality by assuming all period in the same level unlike traditional methods these methods allow for determining the relationship and casual dynamics between variables in different regimes the causality results obtained for different regimes assisted to suggest policy recommendations for each regime individually according to analysis results it was found that there is bidirectional granger causality between carbon dioxide emissions and economic growth in the crisis regime and in the high growth regime while carbon dioxide emissions are granger cause of economic growth in all regimes in general we found evidence that hydropower energy consumption is granger cause of economic growth in general whereas there is a bidirectional causality for some g7 countries furthermore the results from these models indicate that in the first second and third regimes carbon dioxide emissions are granger cause of hydropower energy consumption and hydropower energy consumption is granger cause of carbon dioxide emissions for some g7 countries

the relationship between economic growth and electricity consumption from renewable and non renewable sources a study of turkey abstract the main objective of this study is to analyze the short and long run estimates as well as the causality relationships between economic growth gr electricity consumption from renewable sources relc and electricity consumption from non renewable sources nrelc for turkey in a multivariate model wherein capital k and labor l are included as additional variables using the autoregressive distributed lag ardl approach to cointegration the johansen cointegration test and the gregory hansen cointegration test with structural break we show that gr relc nrelc k and l are cointegrated although nrelc has a long run positive effect on gr the long run estimate of relc is negative but insignificant at 5 level of significance the granger causality test based on the vector error correction model reveals the evidence of neutrality hypothesis between relc and gr and between nrelc and gr in turkey in the short run in addition the granger causality runs from relc nrelc k and l to gr as well as from gr relc k and l to nrelc in the long run which supports the existence of growth hypothesis between relc and gr and feedback hypothesis between nrelc and gr in the long run it is advised that policy makers in the turkish government should continue to reduce the share of electricity consumption from renewable sources and encourage the usage of electricity from non renewable sources to have sustainable long run growth rates it is also essential to promote the investment projects to increase the efficiency of electricity generation from non renewable sources

the potential for using excise taxes to reduce smoking we examine the potential for reducing cigarette smoking through increases in cigarette excise taxes by estimating the price elasticity of demand for cigarettes using information on individual smoking behavior from the 1976 health interview survey we estimate the adult price elasticity of demand for cigarettes to be 0 42 we find that price has its greatest effect on the smoking behavior of young males and that it operates primarily on the decision to smoke rather than via adjustments in the quantity of cigarettes smoked an excise tax increase would discourage smoking by successive cohorts of young adults and those reduced smoking levels would be reflected in aggregate smoking as these cohorts mature

a pack a day for 20 years smoking and cigarette pack sizes this study focuses on the determinants of cigarette consumption in particular the impact of cigarette pack sizes on the typical daily consumption of smokers is investigated results are presented from a new multi modal count data model which allows for pack effects in daily consumption levels our results suggest that smokers regulate their consumption in accordance with the variety of pack sizes that are available to them

energy security and renewable energy deployment in the eu liaisons dangereuses or virtuous circle abstract a large body of literature estimates the effect of energy security drivers on renewable energy deployment using import dependence as a proxy for energy security which is an approach that ignores the potential effect of other energy security strategies such as the diversification of energy sources using panel data for the energy sector across 21 eu member states we investigate the effect of different energy security concepts on the development of renewable energies we compare the results of applying different energy security indicators including the ones used in eu energy policymaking unlike previous studies this study reports a long term relationship between energy security and renewable deployment our findings suggest that the relationship between energy security policies and renewable energy sources res deployment is far from straightforward and depends on the chosen energy security strategy which is usually linked to different energy security conceptualizations our primary findings confirm i that res deployment is a consequence of a combination of energy security strategies including environmental concerns rather than being solely caused by a shift towards more sustainable energy policies and ii that among the different energy security strategies the diversification of energy sources through renewable energy deployment is a more coherent strategy than using res to reduce dependency

the relationship amongst energy consumption renewable and non renewable and gdp in algeria abstract this study aims to explore economic growth energy consumption nexus in algeria between 1980 and 2012 with cointegration tests we demonstrate the existence of long run link between real gross domestic product real capital and the two categories of energy consumption i e renewable energy per capita and non renewable energy the long run and the short run autoregressive distributed lag ardl estimates indicate that only the non renewable energy sort and capital can contribute to enhancing economic growth whereas renewable energy does not show any significant effect the outcome of causality tests proves a feedback link among non renewable energy consumption and gross domestic product among capital and gross domestic product and among non renewable energy and capital in both short run and long run terms moreover the results reveal a unidirectional link going from renewable energy to economic growth capital and non renewable energy respectively in the long run furthermore the results illustrate the presence of a unidirectional link going from non renewable energy to renewable energy in the short term our outcome suggests that policy makers in algeria should enhance the renewable energy share together with controlling the non renewable one

growth and renewable energy in europe a random effect model with evidence for neutrality hypothesis this is an empirical study on the causal relationship between economic growth and renewable energy for 27 european countries in a multivariate panel framework over the period 1997 2007 using a random effect model and including final energy consumption greenhouse gas emissions and employment as additional independent variables in the model empirical results do not confirm causality between renewable energy consumption and gdp although panel causality tests unfold short run relationships between renewable energy and greenhouse gas emissions and employment the estimated cointegration factor refrains from unity indicating only a weak if any relationship between economic growth and renewable energy consumption in europe suggesting evidence of the neutrality hypothesis which can partly be explained by the uneven and insufficient exploitation of renewable energy sources across europe

renewable energy oil prices and economic activity a granger causality in quantiles analysis this paper analyzes the causal relationship between renewable energy consumption oil prices and economic activity in the united states from july 1989 to july 2016 considering all quantiles of the distribution although the concept of granger causality is defined for the conditional distribution the majority of papers have tested granger causality using conditional mean regression models in which the causal relations are linear we apply a granger causality in quantiles analysis that evaluates causal relations in each quantile of the distribution under this approach we can discriminate between causality affecting the median and the tails of the conditional distribution we find evidence of bi directional causality between changes in renewable energy consumption and economic growth at the lowest tail of the distribution besides changes in renewable energy consumption lead economic growth at the highest tail of the distribution our results also support the unidirectional causality from fluctuations in oil prices to economic growth at the extreme quantiles of the distribution finally we find evidence of lower tail dependence from changes in oil prices to changes in renewable energy consumption our findings call for government policies aimed at developing renewable energy markets to increase energy efficiency in the u s

unemployment insurance and smoking using recent state level data from the united states this article examines new influences on cigarette demand in particular we uniquely focus on the effects of unemployment and health insurance coverage on smoking results show that higher cigarette prices a lack of health insurance and restrictions on smoking at home all lead to reduced smoking on the other hand literacy income unemployment workplace smoking restrictions smokeless tobacco taxes and tobacco producing states do not seem to have an appreciable impact the magnitude of the price elasticity of demand is greater than that found in the pre msa era policy implications are discussed

renewable energy consumption and income in emerging economies abstract increased economic growth and demand for energy in emerging economies is creating an opportunity for these countries to increase their usage of renewable energy this paper presents and estimates two empirical models of renewable energy consumption and income for a panel of emerging economies panel cointegration estimates show that increases in real per capita income have a positive and statistically significant impact on per capita renewable energy consumption in the long term a 1 increase in real income per capita increases the consumption of renewable energy per capita in emerging economies by approximately 3 5 long term renewable energy per capita consumption price elasticity estimates are approximately equal to 0 70

economic growth fossil fuel and non fossil consumption a pooled mean group analysis using proxies for capital this study employs a pooled mean group estimator to examine the nexus between economic growth and fossil and non fossil fuel consumption for 53 countries between 1990 and 2012 the global sample was divided into four categories developed exporters developed importers developing exporters and developing importers the purpose of these categories was to observe whether factors unique to these countries influence the relationship between energy consumption and economic growth with the exception of developing importers evidence of bi directional causality between fossil fuel consumption and real gdp across all subsamples is observed this leads to the conclusion that efforts to directly conserve fossil fuels may harm economic growth in terms of non fossil fuel use the results are more diverse bi directional causality between non fossil fuel use and real gdp is found in the long and short run for developed importers bi directional causality only in the long run for developed exporters negative long run causality from real gdp to non fossil fuels for developing exporters and long run causality from non fossil fuel use to real gdp for developing importers these results lead to the conclusion that other factors have been responsible for the progress seen in non fossil fuel use thus it is concluded that economic growth on its own is insufficient to promote clean energy development there is a need for policy makers to create an environment conducive to renewable energy investment

renewable and non renewable energy consumption growth nexus evidence from a panel error correction model abstract unlike previous renewable energy consumption growth studies this study examines the relationship between renewable and non renewable energy consumption and economic growth for 80 countries within a multivariate panel framework over the period 1990 2007 the pedroni 1999 2004 heterogeneous panel cointegration test show a long run equilibrium relationship between real gdp renewable energy consumption non renewable energy consumption real gross fixed capital formation and the labor force with the respective coefficient estimates positive and statistically significant there is little difference in the elasticity estimates with respect to renewable and non renewable energy consumption the results from the panel error correction model reveal bidirectional causality between renewable and non renewable energy consumption and economic growth in both the short and long run also there is bidirectional short run causality between renewable and non renewable energy consumption indicative of substitutability between the two energy sources

applied econometrics and implications for energy economics research abstract developments in applied econometrics particularly with regard to unit root tests and cointegration tests have motivated a rich empirical literature on energy economics over the last decade this study reviews recent developments in time series econometrics applications in the energy economics literature we first consider the literature on the integration properties of energy variables we begin with a discussion of the implications of whether energy variables contain a unit root and proceed to examine how results differ according to the specific unit root or stationarity test employed we then proceed to examine recent developments in the literature on cointegration granger causality and long run estimates between disaggregated energy consumption and economic growth we review both single country and panel studies and pay particular attention to studies which have expanded the literature through adding variables such as financial development and trade in addition to energy consumption to the augmented production function as well as studies which have extended the literature through examining disaggregated energy consumption by type in each case we highlight best practice in the literature point to limitations in the literature including econometric modeling challenges and suggest recommendations for future research a key message of our survey is that the profession needs to guard against overload of research in these areas as most applied studies are no longer adding anything more to what is already known

intercourse across economic growth trade and renewable energy consumption in developing and developed countries abstract this article exploits a dynamic simultaneous equation panel data approach to research the bond across economic growth renewable sort of energy and trade for information of 72 countries since 1990 until 2012 we likewise analyze this relationship by separating all countries into three groups as per the level of development whole developing high income developing upper middle income developing lower middle income developing lower income developing developed major developed and others developed countries the outcomes demonstrate a feedback linkage between income and renewable energy consumption between trade and renewable energy consumption and between trade and income this implies that the three variables considered are interdependent

energy consumption and gdp causality a three step analysis for emerging european countries abstract the established european targets should play a leading role in the complex economic process of energy consumption and the emerging countries have to consider their implications for adjusting the energy policies at national level this paper develops investigations on the causality relationship between energy consumption and gdp in the context of emerging european countries covering the period 1980 2013 this research covers the limits identified by previous researchers by detailing the energy consumption by sources and by referring to five emerging countries in europe unlike most of the previous studies it has a double approach long and short run bidirectional relationships a detailed analysis on the impact of economic growth on the energy consumption by country is conducted in order to contribute to the enrichment of the research field towards this objective a three step analysis is performed stationarity cointegration and causality tests are considered the empirical study shows mixed results there is a balance in confirming conservation growth and neutrality hypotheses in some specific cases results imply that energy consumption and economic growth are jointly determined however a comparative analysis for different significance levels draws attention on the differences in judgment of results for this type of studies discussions on the results in terms of causality are conducted in order to identify future trends for research

is renewable energy effective in promoting growth abstract this paper applies panel data techniques to analyze the role of the various energy sources in economic growth for a set of 24 european countries 1990 2007 controlling for energy consumption and energy dependency the results suggest that the negative effect of the use of renewables supplants the positive effect of creating income by exploiting a natural resource locally and thus growth does not appear to improve with the change towards renewables the high costs of promoting renewables are probably being placed excessively upon the economy namely by increasing the costs of electricity tariffs thus inducing a deceleration in economic activity fossil fuels lead to dissimilar effects on growth while natural gas does not appear to be relevant in explaining growth coal hampers the capacity for growth whereas the use of oil stimulates that growth this is in line with productive structures that are deeply grounded in fossil fuels particularly oil

the governmental composition of the insurance costs of smoking abstract the estimated health risks from smoking have significant external financial consequences for society studies at the national level indicate that cigarettes are self financing since external costs such as those due to illnesses are offset by cost savings associated with premature death chiefly pension costs this paper extends this analysis to all 50 states and considers the costs considered in the state attorneys general suits against the cigarette industry cigarettes are always self financing from the standpoint of costs to each state the extent of the cost savings is less than at the federal level however smokers higher medical costs are outweighed by reduced nursing home expenditures lower pension costs and excise taxes where each of these factors alone usually exceeds the medical cost effect

market forces and aircraft safety an extension market forces and aircraft safety an extension gordon v karels recent work by chalk focuses on whether market forces provide safe products via stock market reaction to unanticipated events chalk finds a 200 million decline in mcdonnell douglas stockholder wealth related to the 1979 dc 10 crash in chicago that decline far exceeds reasonable estimates of regulatory and liability costs suggesting a market penalty for unsafe products his results however do not seem consistent with the notion of efficient markets as american airlines maintenance procedures were quickly identified as the likely cause of the crash this study finds no resulting shareholder wealth loss for american airlines or mcdonnell douglas i introduction in a recent article in this journal andrew chalk 1986 attempts to test whether market forces provide safety when products are too complex to permit buyer repurchase inspection to do so he uses the rather ingenious method of examining the abnormal returns to mcdonnell douglas stock prices following the may 25 1979 crash of a dc 10 just outside o hare airport in chicago efficient market theory predicts that perceived safety problems in products will result in a fall in the firm s stock price due primarily to a product demand effect if this is the case market forces would compel producers to invest in product safety even in situations when the technical safety aspects of the product are beyond the comprehension of the average consumer as is the case with large commercial aircraft chalk s study finds large and statistically significant negative abnormal returns to mcdonnell douglas stockholders on the order of 200 million in almost every case where news is released just after the crash both favorable and unfavorable with respect to mcdonnell douglas chalk finds statistically significant abnormal returns to mcdonnell douglas stock what is interesting about this particular event was that faulty maintenance and not a product defect was ultimately blamed as the principal cause of the crash initially the general safety of the dc 10 was questioned but subsequent evidence indicated that the maintenance procedure of an american airlines mechanic who later moved on to continental and taught the technique there of removing the engine and pylon in one step instead of separately caused stress which led to the engine tearing loose american airlines and continental ended up paying fines of 500 000 and 100 000 respectively for this procedure but american did not admit guilt for the crash in paying the fine 1 given that most of the blame for the crash fell on american s maintenance procedure the finding of significant cumulative abnormal returns by chalk are surprising in the context of efficient markets evidence of faulty maintenance procedures became public information within two weeks after the crash because of the initial uncertainty over the cause of the crash significant abnormal returns for particular event days are likely but those negative abnormal returns should be offset in later periods as the true cause becomes known to investors thus the finding of significant cumulative abnormal returns to mcdonnell douglas would not be consistent with the semistrong form of efficient markets the purpose of this note is to replicate and extend the findings of chalk s study by examining the market forces that affected the other major party involved in subsequent litigation american airlines corporation following chalk s argument one would expect to see the market impose substantial costs on american if it is believed that travel on that airline is less safe than previously thought travelers could substitute towards other airlines where possible reducing cash flow and hence the value of the firm the size of the demand effect should have little to do with american s investment in aircraft safety

renewable energy consumption co2 emissions and oil prices in the g7 countries abstract economic and societal issues related to energy security and global warming is placing greater emphasis on the consumption of renewable energy this paper presents and estimates an empirical model of renewable energy consumption for the g7 countries panel cointegration estimates show that in the long term increases in real gdp per capita and co2 per capita are found to be major drivers behind per capita renewable energy consumption these results are robust across two different panel cointegration estimators oil price increases have a smaller although negative impact on renewable energy consumption deviations from equilibrium are driven mostly by the error correction term as opposed to short term shocks short term deviations from the long term equilibrium take anywhere from between 1 3 years france and 7 3 years japan to correct

the effects of excise taxes and regulations on cigarette smoking abstract we estimate a generalized linear model to examine adult and teenage cigarette demand our analysis focuses on the extent to which exice taxes and regulations restricting smoking in public places affect cigarette consumption the adult results indicate that the price elasticity of demand is unstable over time ranging from 0 06 in 1970 to 0 23 in 1985 these estimates are lower than most found in previous studies the teenage price elasticity does not differ statistically from the estimates for adults additionally regulations restricting smoking in public places have a significant effect on both adult and teenage cigarette demand

a panel bootstrap cointegration test this paper proposes a bootstrap test for the null hypothesis of cointegration in panel data the test is general enough to allow for dependence both within and between the cross sectional units and is shown to work well in small samples

hydroelectricity consumption and economic growth nexus evidence from a panel of ten largest hydroelectricity consumers abstract this paper explores the long run and causal relationships between hydroelectricity consumption and economic growth for a panel of the 10 largest hydroelectricity consuming countries over the period 1965 2012 the countries include brazil canada china france india japan norway sweden turkey and the u s a using the bai and perron 2003 9 tests for cointegration the results indicate that real gdp per capita and hydroelectricity consumption per capita appear to be cointegrated around a broken intercept granger causality results from a nonlinear panel smooth transition vector error correction model suggest different results depending on the regimes which we identified based on structural break tests the test identified three breaks at 1988 2000 and 2009 for the pre 1988 period there is evidence of unidirectional causality running from real gdp per capita to hydroelectricity per capita in both the short and long run over the post 1988 period there exists evidence of bidirectional causality between hydroelectricity energy consumption per capita and real gdp per capita in both the short and the long run the results imply the existence of a feedback hypothesis with both hydroelectricity consumption and growth promoting each other in more recent periods as the importance of hydroelectricity as a renewable energy has become more prominent

renewable energy consumption and economic growth evidence from a panel of oecd countries abstract this study examines the relationship between renewable energy consumption and economic growth for a panel of twenty oecd countries over the period 1985 2005 within a multivariate framework given the relatively short span of the time series data a panel cointegration and error correction model is employed to infer the causal relationship the heterogeneous panel cointegration test reveals a long run equilibrium relationship between real gdp renewable energy consumption real gross fixed capital formation and the labor force with the respective coefficients positive and statistically significant the granger causality results indicate bidirectional causality between renewable energy consumption and economic growth in both the short and long run

renewable energy consumption economic growth nexus for china abstract the aim of this paper is to investigate the relationship between renewable energy consumption and economic growth in china for the period 1977 2011 autoregressive distributed lag approach ardl to cointegration and johansen cointegration techniques are employed by including intermittent variables namely carbon dioxide emissions and labor we also employed granger causality test in order to determine the direction of the causality among the variables the results show that there is a bi directional long term causality between renewable energy consumption and economic growth this finding implies that growing economy in china is propitious for the development of renewable energy sector which in turn helps to boost economic growth we also find that labor influences renewable energy consumption in the short term however there is no evidence of long or short run causality between carbon emissions and renewable energy consumption this implies that actual level of renewable energy in china is still insignificant and not considerably exploited in order to contribute to the mitigation of carbon dioxide emissions

the hydroelectricity consumption and economic growth in asian countries evidence using an asymmetric cointegration approach this study examines the four commonly tested hypotheses in hydroelectricity consumption economic growth literature for 12 asian countries our results from a recently developed hidden cointegrati

electricity generation mix and economic growth what role is being played by nuclear sources and carbon dioxide emissions in france abstract the gradual trend towards the electrification of economies has raised new challenges focusing on france this paper uses monthly data from january 2010 to november 2014 to study the challenge of the simultaneous integration of various sources of generation and their relationship with economic growth for the analysis of the dynamics of interaction between electricity sources the auto regressive distributed lag ardl bounds test approach was shown to be appropriate as it allows short and long run effects to be distinguished the results showed that nuclear energy has been a huge driver of economic growth in france and at the same time leads to an environment with lower co 2 emissions renewables were shown to exert a negative effect on economic growth which could be due to lack of investment in other sources of production due to the resilient position held by nuclear sources the substitution effect among sources is noticeable the robustness of the results was checked using annual data from 1970 until 2012 and the results were comparable to those from the monthly data

the duration of the smoking habit i introduction most smokers smoke out of habit once the habit is ended many of smoking s most harmful effects decline rather quickly preventing and ending cigarette addiction is therefore the straightest path toward preventing the health damage done by cigarette smoking consequently the related questions of why people start smoking and why they quit are central to formulating and evaluating effective antismoking policies duration or hazard models are designed to measure the probability of transition between states and are thus ideal for investigating the structural determinants of the transition between addiction and non addiction nevertheless most previous work in the economics literature uses the aggregate smoking participation rate defined as the percentage of people who currently smoke or an individual s probability of participation rather than a hazard rate to measure the attractiveness of habitual smoking this paper models the hazard rates of both starting and quitting the cigarette smoking habit the starting hazard rate is the probability that an individual will start smoking in a given time period conditional on being a nonsmoker until then the quitting hazard rate is the probability of quitting smoking in a given time period conditional on being a smoker since the starting date both of these rates should rise and fall in response to changes in the attractiveness of smoking the two rates will respond differently to different stimuli since the starting hazard reflects the point of view of nonsmokers and the quitting hazard reflects the point of view of smokers hazard or duration models possess several advantages over smoking participation models most obviously smoking participation rates cannot directly distinguish between increased starting rates and decreased quitting rates but the hazard models can also in a participation rate model it is difficult to control for the effect of the duration of the habit whereas duration models are designed specifically to allow for and measure the dependence of the hazard rate on duration another advantage is that the participation rate at any one time will oversample the number of long term smokers relative to those who had a short term habit whereas a duration model is designed to avoid this source of bias one drawback however is that because of their inherent panel nature the data requirements of duration models are somewhat more difficult to satisfy as shall be seen the only previous work in the economics literature that estimates the hazard rate of starting smoking is douglas and hariharan 1994 my paper improves upon douglas and hariharan in at least three important ways first it estimates the hazard rate of quitting smoking as well as that of starting second it takes into account variation in state level regulation third its time varying covariate model allows hazard rates to respond dynamically to changes in cigarette price regulation and information variables the use of time varying covariates is important because it brings the empirical model into much closer accord with theory the decision whether or not to start or quit smoking is an ongoing decision made one day at a time on the basis of current information the hazard of starting is greatest when the cost of the habit appears lowest and its benefit appears highest this comparison of cost and benefit changes through time as price information income and life cycle variables change while douglas and hariharan 1994 used price information from the potential smoker s most vulnerable age on the theory that its marginal effect is greatest at that time the model used in this paper allows each individual s hazard rate to respond to changes in price and public information as they occur the leading theoretical model of the decision to smoke is the rational addiction model of becker and murphy 1988 which assumes that consumers of addictive goods begin smoking only after fully weighing the costs and benefits of the habit

the role of renewable energy consumption in economic growth evidence from asymmetric causality abstract this paper investigates the causality among economic growth renewable energy consumption capital and labor for new eu member countries for the period of 1990 2009 by using asymmetric causality test approach and autoregressive distributed lag ardl approach the empirical results support that renewable energy consumption has positive impacts on economic growth for all investigated countries but only for bulgaria estonia poland and slovenia there is statistically significant impact on economic growth has found and also supports neutrality hypothesis for cyprus estonia hungary poland and slovenia while the conservation hypothesis is present for czech republic the fact that there is a causal relationship from economic growth to renewable energy consumption and the growth hypothesis is supported for bulgaria referring to causality from energy consumption to economic growth

what is better for mitigating carbon emissions renewable energy or nuclear energy a panel data analysis abstract this paper investigates the determinants of carbon emissions based on energy consumption analyzing the data of 30 countries using nuclear energy for the period 1990 2014 renewable energy and nuclear energy consumption are adopted as determinants and real coal price and real gdp are used as additive variables the panel cointegration analysis and granger causality tests are conducted to investigating the relationship among the variables first the panel cointegration test results suggest that long run equilibrium relationship exists among carbon emissions renewable energy consumption and nuclear energy consumption the results of the long run cointegrating vector and granger causality tests indicate that nuclear energy does not contribute to carbon reduction unlike renewable energy thus the development and expansion of renewable not nuclear energy are essential to prevent global warming though there is a concern that rising energy prices caused by the expansion of renewable energy may impact the economy negatively our empirical results also imply that renewable energy consumption will promote economic growth in other words our evidence shows that using and expanding renewable energy is both economically and ecologically beneficial

the relationship between disaggregate energy consumption and industrial production in the united states an ardl approach abstract we re examine the relationship between disaggregate energy consumption and industrial output as well as employment in the united states using the autoregressive distributed lag ardl approach developed by pesaran and pesaran pesaran m h pesaran b 1997 working with microfit 4 0 camfit data ltd cambridge and pesaran shin and smith pesaran m h shin y smith r j 2001 bounds testing approaches to the analysis of level relationships journal of applied econometrics 16 289 326 in particular we focus attention on the following energy consumption variables coal fossil fuels conventional hydroelectric power solar energy wind energy natural gas wood and waste the sample period covers 2001 1 2005 6 our results imply that real output and employment are long run forcing variables for nearly all measures of disaggregate energy consumption

renewable energy consumption and growth in eurasia this study examines the causal relationship between renewable energy consumption and economic growth for 13 countries within eurasia over the period 1992 2007 within a multivariate panel data framework the heterogeneous panel cointegration test reveals a long run equilibrium relationship exists between real gdp renewable energy consumption real gross fixed capital formation and labor force the results from the error correction models indicate bidirectional causality between renewable energy consumption and economic growth in both the short run and long run thus the empirical findings lend support for the feedback hypothesis of the interdependent relationship between renewable energy consumption and economic growth

decoupling global environmental pressure and economic growth scenarios for energy use materials use and carbon emissions in recent decades economic growth and increased human wellbeing around the globe have come at the cost of fast growing natural resource use including materials and energy and carbon emissions leading to converging pressures of declining resource security rising and increasingly volatile natural resource prices and climate change we ask whether well designed policies can reduce global material and energy use and carbon emissions with only minimal impacts on improvements in living standards we use a novel approach of combined economic and environmental modelling to assess the potential for decoupling for 13 world regions and globally we apply a production territorial and consumption approach to discuss regional differences in natural resource use and carbon emissions across three stylized policy outlooks a reference case with no significant changes to environment and climate policies a high efficiency outlook involving a global carbon price rising from 50 to 236 constant price per tonne of co2 between 2010 and 2050 and improvements in resource efficiency rising from 1 5 historically to between 3 5 and 4 5 in the scenarios and a medium efficiency outlook midway between the no change and high outlooks we find that global energy use will continue to grow rapidly under all three scenarios from 17 billion tonnes of oil equivalent toe in 2010 to between 30 and 36 billion toe carbon emissions would be considerably lower with a global carbon price less than half the level of the reference case 29 37 billion tonnes of co2 instead of 74 billion tonnes and also material use would grow much more slowly under a carbon price and significant investment to increase resource efficiency 95 instead of 180 billion tonnes of materials we find that oecd economies have significant potential to reduce their material throughput and carbon emissions with little impact on economic growth and that developing economies such as china could expand their economies at much lower environmental cost globally the effects of very strong abatement and resource efficiency policies on economic growth and employment until 2050 are negligible our study suggests that decarbonization and dematerialization are possible with well designed policy settings and would not contradict efforts to raise human wellbeing and standards of living the research demonstrates the usefulness of scenarios for unpacking environmental and economic outcomes of policy alternatives the findings have important implications for future economic opportunities in a highly resource efficient and low carbon global economy to set human development and achieving the sustainable development goals on a more resilient path

a literature survey on energy growth nexus abstract this paper provides a survey of the recent progress in the literature of energy consumption economic growth and electricity consumption economic growth causality nexus the survey highlights that most empirical studies focus on either testing the role of energy electricity in stimulating economic growth or examining the direction of causality between these two variables although the positive role of energy on growth has become a stylized fact there are some methodological reservations about the results from these empirical studies a general observation from these studies is that the literature produced conflicting results and there is no consensus neither on the existence nor on the direction of causality between energy consumption electricity consumption and economic growth as a policy implication to avoid from conflicting and unreliable results the authors may use the autoregressive distributed lags bounds test two regime threshold co integration models panel data approach and multivariate models including new variables such as real gross fixed capital formation labor force carbon dioxide emissions population exchange rates interest rates etc thus the authors should focus more on the new approaches and perspectives rather than by employing usual methods based on a set of common variables for different countries and different intervals of time

the causal relationship between renewable electricity generation and gdp growth a study of energy sources abstract this paper examines the causal relationship between economic growth and electricity generation from renewable sources biomass geothermal hydroelectric solar waste and wind across 20 oecd countries over 1990 to 2008 the results from a commonly used panel error correction model find a a bidirectional relationship between aggregate renewable generation and real gdp b biomass hydroelectricity waste and wind energy exhibit a positive long run relationship with gdp c hydroelectricity and waste generation exhibit a short run positive bidirectional relationship with gdp growth and d biomass hydroelectric and waste electricity generation have the largest impact on real gdp in the long run we extend the analysis to consider the possibility of structural breaks and cross sectional dependence accounting for cross sectional dependence we find that in the short run increases in biomass and waste generation negatively affect gdp while aggregate renewable and hydroelectricity increase gdp energy conservation policies will positively impact gdp if the policies cause decreases in biomass or waste energy but increase hydroelectricity and wind energy