Advancements in Energy Economics: Historical Perspectives, Modelling Persistence, and Time-Varying Cointegration

Date

2024-9-20

Author

Tanrıverdi, Saliha

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This study explores the historical developments behind climate change and the relationship between clean energy components. To gain a comprehensive understanding of the clean energy sector, a country-specific analysis was conducted for ten countries with the highest levels of clean energy consumption, for the period 1950-2020. International agreements with significant impacts on clean energy have been examined in depth. Unlike previous studies, we analyze two clean energy series, renewable and nuclear energy, separately and comparatively due to their differing sensitivities to external shocks and country-specific approaches. We use the share series of clean energy instead of levels, because the share series represent both environmental considerations and energy efficiency concerns. In the fourth chapter, the study continues with persistence properties of clean energy shares, recognizing that regulatory policies and market instabilities can lead to structural breaks. To address the sign and size asymmetry of series’ responses, we employ a modified version of Quantile Unit Root procedures allowing for quantile-specific detection of sharp and smooth break parameters. The study further aims to explore the long-run relationship between emissions and clean energy consumption, in the fourth chapter. In consideration for the impacts of certain events on the long-run relationships, Time-Varying Cointegration methodologies was used, approximating structural breaks as smooth regime changes. We claim that current intergovernmental activities should employ a club-like mechanism, where non-participation incurs penalties. The results indicate that series exhibit stationary behavior upon inclusion of breaks, and asymmetric responses are country-specific. When structural breaks are considered, CO2 emissions are cointegrated with the shares of clean energy components.

Subject Keywords

Energy Economics, Economic History, Time Series, Long-memory, Time-varying Cointegration

URI

https://hdl.handle.net/11511/111296

Collections

Graduate School of Social Sciences, Thesis