Mean Reverting Behavior of Energy Consumption: Evidence from Selected MENA Countries

Authors

  • Suleyman Bolat Cumhuriyet University, department of public finance
  • Murat Belke Akdeniz University, department of economics
  • Necati Celik University of Utah, department of economics

Abstract

This study examines whether the energy consumption for 15 members of the Middle Eastern & North African (MENA) countries is a stationary process over 1971-2010 period. Annual energy consumption  data for Algeria, Bahrain, Egypt, Iran, Israel, Jordan, Lebanon, Libya, Morocco, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Turkey, is analyzed using the Lagrange Multiplier (LM) unit root test, in which structural breaks in level and/or trend are endogenously determined. The results of the LM test with two breaks showed that the energy consumption per capita in 8 MENA countries is a stationary process. This study suggests that it is possible to design consistent energy policies based on econometric models and forecasts of energy consumption in those 8 MENA countries. Keywords: Energy Consumption; Unit Root; LM test; MENA JEL Classifications: E21; Q43

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Published

2013-07-17

How to Cite

Bolat, S., Belke, M., & Celik, N. (2013). Mean Reverting Behavior of Energy Consumption: Evidence from Selected MENA Countries. International Journal of Energy Economics and Policy, 3(4), 315–320. Retrieved from https://econjournals.com/index.php/ijeep/article/view/527

Issue

Vol. 3 No. 4 (2013)

Section

Articles

License

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