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Stochastic convergence in per capita fossil fuel consumption in U.S. states

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  • Payne, James E.
  • Vizek, Maruška
  • Lee, Junsoo

Abstract

This study examines the stochastic convergence of per capita fossil fuel consumption across U.S. states (including the District of Columbia) utilizing LM and RALS-LM unit root tests with allowance for endogenously determined structural breaks. Our results indicate that with the exception of Nevada, the evidence from two-break and one-break LM and RALS-LM unit root tests rejects the null hypothesis of a unit root in the relative per capita fossil fuel consumption in the U.S. This finding indicates the presence of stochastic convergence in relative per capita fossil fuel consumption in the U.S. states.

Suggested Citation

  • Payne, James E. & Vizek, Maruška & Lee, Junsoo, 2017. "Stochastic convergence in per capita fossil fuel consumption in U.S. states," Energy Economics, Elsevier, vol. 62(C), pages 382-395.
    • Handle: RePEc:eee:eneeco:v:62:y:2017:i:c:p:382-395
    DOI: 10.1016/j.eneco.2016.03.023
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    More about this item

    Keywords

    Per capita fuel consumption; Convergence; Unit roots; Trend-shifts;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates

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