IDEAS home Printed from https://ideas.repec.org/a/ssi/jouird/v5y2023i4p65-79.html
   My bibliography  Save this article

Energy use tendencies in a resource-abundant country: the case of Canada

Author

Listed:
  • Mustafa NaimoÄŸlu

    (Bingol University, Turkey)

  • Ä°smail Kavaz

    (Fırat University, Turkey)

Abstract

Today’s global energy agenda focuses especially on the fields of increasing energy demand, security of supply and climate change. This situation causes the energy efficiency phenomenon to be considered by policymakers seriously, and additionally to be developed strategies by determining targets in this field. In this sense, it is thought that developments in the field of energy efficiency will increase energy savings and reduce emissions caused by high consumption. On the other hand, the expected improvements in energy saving based on consumer behavior are less than anticipated. In measuring the mentioned dimension, one of the important parameters is defined as the rebound effect. This effect is considered as a dilemma that is frequently emphasized, especially in developed countries since there is a prevailing opinion that the developments in energy efficiency may not cause the expected results in savings. Therefore, it is extremely important to accurately measure the dimensions of the said effect in terms of both guiding policymakers in their strategies on energy efficiency and preventing waste of resources. This study tests the validity of the rebound effect for Canada using annual data from 1972 to 2019. In the study, the Fourier Engle-Granger Cointegration Test, which is one of the current econometric methods, was used, and then FMOLS, CCR and DOLS methods were utilized for the estimation of the short- and long-term coefficients. Empirical findings suggest that increases in energy efficiency in Canada increase energy consumption. Thus, it can be said that the rebound effect is valid for Canada.

Suggested Citation

  • Mustafa NaimoÄŸlu & Ä°smail Kavaz, 2023. "Energy use tendencies in a resource-abundant country: the case of Canada," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 5(4), pages 65-79, December.
    • Handle: RePEc:ssi:jouird:v:5:y:2023:i:4:p:65-79
    DOI: 10.9770/ird.2023.5.4(5)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/ird/uploads/articles/20/Naimoglu_Energy_use_tendencies_in_a_resourceabundant_country_the_case_of_Canada.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/ird/article/147
    Download Restriction: no
    File URL: https://libkey.io/10.9770/ird.2023.5.4(5)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Park, Joon Y, 1992. "Canonical Cointegrating Regressions," Econometrica, Econometric Society, vol. 60(1), pages 119-143, January.
    2. Wang, Zhaohua & Lu, Milin & Wang, Jian-Cai, 2014. "Direct rebound effect on urban residential electricity use: An empirical study in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 124-132.
    3. Peter C. B. Phillips & Bruce E. Hansen, 1990. "Statistical Inference in Instrumental Variables Regression with I(1) Processes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 99-125.
    4. Meng, Ming & Li, Xinxin, 2022. "Evaluating the direct rebound effect of electricity consumption: An empirical analysis of the provincial level in China," Energy, Elsevier, vol. 239(PB).
    5. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    6. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
    7. Bilal Mehmood & Acleo Feliceo & Amna Shahid, 2014. "What Causes What? Aviation Demand And Economic Growth In Romania: Cointegration Estimation And Causality Analysis," Romanian Economic Business Review, Romanian-American University, vol. 9(1), pages 21-33, March.
    8. Jin, Sang-Hyeon, 2007. "The effectiveness of energy efficiency improvement in a developing country: Rebound effect of residential electricity use in South Korea," Energy Policy, Elsevier, vol. 35(11), pages 5622-5629, November.
    9. Nelson C. Mark & Donggyu Sul, 2003. "Cointegration Vector Estimation by Panel DOLS and Long‐run Money Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 655-680, December.
    10. Sorrell, Steve & Dimitropoulos, John & Sommerville, Matt, 2009. "Empirical estimates of the direct rebound effect: A review," Energy Policy, Elsevier, vol. 37(4), pages 1356-1371, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ansgar Belke & Robert Czudaj, 2010. "Is Euro Area Money Demand (Still) Stable? Cointegrated VAR Versus Single Equation Techniques," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(4), pages 285-315.
    2. repec:zbw:rwirep:0171 is not listed on IDEAS
    3. Skare, Marinko & Ozturk, Ilhan & Porada-Rochoń, Małgorzata & Stjepanovic, Sasa, 2024. "Energy as the new frontier: Dynamic panel data analysis revealing energy's transformative role in economic growth and technological progress," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    4. Yunus Emre Kayabas, 2022. "Testing the EKC Hypothesis in terms of Trade Openness, Industrial and Construction Development: Evidences from Northern European and Latin American Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 319-331, September.
    5. Jin, Taeyoung & Kim, Jinsoo, 2019. "A new approach for assessing the macroeconomic growth energy rebound effect," Applied Energy, Elsevier, vol. 239(C), pages 192-200.
    6. Oryani, Bahareh & Koo, Yoonmo & Rezania, Shahabaldin & Shafiee, Afsaneh & Khan, Muhammad Kamran & Mahdavian, Seyed Mohammadreza, 2021. "The role of electricity mix and transportation sector in designing a green-growth strategy in Iran," Energy, Elsevier, vol. 233(C).
    7. Škare, Marinko & Porada-Rochoń, Małgorzata, 2023. "Are we making progress on decarbonization? A panel heterogeneous study of the long-run relationship in selected economies," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    8. Ramiz Rahmanov, 2013. "Stock Market Wealth Effects in Emerging Economies of Eastern Europe: Evidence from Russia and Ukraine," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 5(1).
    9. Nelson C. Mark & Masao Ogaki & Donggyu Sul, 2005. "Dynamic Seemingly Unrelated Cointegrating Regressions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 797-820.
    10. Zhang, Yue-Jun & Peng, Hua-Rong, 2017. "Exploring the direct rebound effect of residential electricity consumption: An empirical study in China," Applied Energy, Elsevier, vol. 196(C), pages 132-141.
    11. Helmi Hamdi & Ali Said & Rashid Sbia, 2015. "Empirical Evidence on the Long-Run Money Demand Function in the Gulf Cooperation Council Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 603-612.
    12. Ouyang, Xiaoling & Yang, Yuchuan & Du, Kerui & Cheng, Zhenyu, 2022. "How does residential electricity consumption respond to electricity efficiency improvement? Evidence from 287 prefecture-level cities in China," Energy Policy, Elsevier, vol. 171(C).
    13. Lin, Boqiang & Zhu, Penghu, 2021. "Measurement of the direct rebound effect of residential electricity consumption: An empirical study based on the China family panel studies," Applied Energy, Elsevier, vol. 301(C).
    14. Ying Han & Jianhua Shi & Yuanfan Yang & Yaxin Wang, 2019. "Direct Rebound Effect for Electricity Consumption of Urban Residents in China Based on the Spatial Spillover Effect," Energies, MDPI, vol. 12(11), pages 1-16, May.
    15. Ansgar Belke & Robert Czudaj, 2010. "Is Euro Area Money Demand (Still) Stable? – Cointegrated VAR versus Single Equation Techniques," Ruhr Economic Papers 0171, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    16. Liu, Jingru & Sun, Xin & Lu, Bin & Zhang, Yunkun & Sun, Rui, 2016. "The life cycle rebound effect of air-conditioner consumption in China," Applied Energy, Elsevier, vol. 184(C), pages 1026-1032.
    17. Lin, Boqiang & Li, Jianglong, 2014. "The rebound effect for heavy industry: Empirical evidence from China," Energy Policy, Elsevier, vol. 74(C), pages 589-599.
    18. Chen, Qian & Zha, Donglan & Wang, Lijun & Yang, Guanglei, 2022. "The direct CO2 rebound effect in households: Evidence from China's provinces," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    19. Matteo Mogliani, 2010. "Residual-based tests for cointegration and multiple deterministic structural breaks: A Monte Carlo study," Working Papers halshs-00564897, HAL.
    20. van Amano, Robert A & Norden, Simon, 1998. "Exchange Rates and Oil Prices," Review of International Economics, Wiley Blackwell, vol. 6(4), pages 683-694, November.
    21. Valérie Mignon & Christophe Hurlin, 2007. "Une synthèse des tests de cointégration sur données de panel," Économie et Prévision, Programme National Persée, vol. 180(4), pages 241-265.

    More about this item

    Keywords

    Fourier Engle-Granger cointegration; total factor productivity; rebound effect; Canada;
    All these keywords.

    JEL classification:

    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouird:v:5:y:2023:i:4:p:65-79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.