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What does export diversification do for energy demand? Evidence from the Global North

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Abstract

This paper contributes to the trade-energy literature by examining the effect of export product diversification on the energy demand of 30 countries located in the Global North over the period 1980–2014. A nonparametric time-varying coefficient panel data model with fixed effects is employed for its ability to produce robust outcomes in the presence of parameter instabilities, nonstationarity, regime shifts, and time variations. As a second step, the paper also utilizes the nonparametric fixed effects extension of Driscoll and Kraay, which is robust to spatial/cross-sectional dependence, as well as to autocorrelation and heteroscedasticity. The results indicate that export diversification lowers overall energy demand in the Global North, and the size of the impact has been on a gradual increase over the years. The paper concludes that if a conscious effort is made to ensure that product diversification is towards energy-efficient goods, export product diversification can serve as a useful strategy for managing energy consumption and mitigating its negative environmental effects.

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Data availability

Corresponding authors can provide data used in the study on appropriate request.

Notes

  1. Detailed information about LLDVE can be obtained in Silvapulle et al. (2017) and Hailemariam et al. (2019).

  2. Detailed information on wild bootstrapping can be obtained in Mammen (1993) and Davidson and Flachaire (2008).

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Authors and Affiliations

  1. Istanbul Ticaret Unversity, Istanbul, Turkey

    Godwin Olasehinde-Williams

  2. School of Economics and Management, Nanchang University, Nanchang, China

    Chien-Chiang Lee

  3. University of Ilorin, Ilorin, Nigeria

    Ajide Folorunsho

Authors
  1. Godwin Olasehinde-Williams
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  2. Chien-Chiang Lee
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  3. Ajide Folorunsho
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Contributions

Godwin Olasehinde-Williams collected and analyzed the data, and also worked on the methodology. Folorunsho M. Ajide wrote the introduction and literature review. Chien-Chiang Lee worked on the study development.

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Correspondence to Godwin Olasehinde-Williams.

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Appendix

Appendix

Table 5 List of Global North countries
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Olasehinde-Williams, G., Lee, CC. & Folorunsho, A. What does export diversification do for energy demand? Evidence from the Global North. Environ Sci Pollut Res 30, 547–556 (2023). https://doi.org/10.1007/s11356-022-22202-w

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