Abstract
This paper analyzes the nonlinearity between temperature, CO2 emission, and energy consumption in US economy. To do this, an ARDL model with linear and nonlinear specifications has been used over the period between 1990:1 and 2016:12. Our finding indicates the existence of nonlinearity between variables. Indeed, the nonlinear models show the existence of a long-run relationship between temperature and electricity consumption and the economic growth of USA can be negatively affected during the periods of increase in temperature.
Similar content being viewed by others
References
Adua, L. (2020). Reviewing the complexity of energy behavior: Technologies, analytical traditions, and household energy consumption data in the United States. Energy Research & Social Science, Vol 59.
Akbari, H. S. (1992). Cooling our communities: A guidebook on tree planting and light color surfacing. Lawrence Berkeley National Laboratory, Accessed. http://escholarship.org/uc/item/98z8p10x.
Aviral, K.T. (2011). Energy consumption, CO2 emissions and economic growth: A revisit of the evidence from India. Applied Econometrics and International Development, Vol. 11–2.
Bessec, M., & Fouquau, J. (2007). The non-linear link between electricity consumption and temperature in Europe: a threshold panel approach. CGEMP: Université Paris Dauphine.
Bigano, A., Bosello, F., & Marano, G. (2006). Energy demand and temperature: A dynamic panel analysis, Fondazione ENI Enrico Mattei Working Paper No. 112.06.
Colacito, R., Hoffmann, B., & Phan, T. (2019). Temperatures and growth: A panel analysis of the U.S. Journal of Money, Credit and Banking, 51(2–3), 313–368.
Colombo, A. F., Etkin, D., & Karney, B. W. (1999). Climate variability and the frequency of extreme temperature events for nine sites across Canada: Implications for power usage. J. Climate., 12(8), 2490–2502.
Cruz Rios, F., Naganathan, H., M.ASCE, W.K.C., Lee, L., & Alves, A. (2017). Analyzing the impact of outside temperature on energy consumption and production patterns in high-performance research buildings in Arizona. Journal of Architectural Engineering, 23(3), C4017002.
Deschenes, O., & Greenstone, M. (2007). Climate change, mortality and adaptation: Evidence from annual fluctuations in weather in the U.S. MIT Department of Economics Working Paper No. 07–19.
Dirks, J. A., Gorrissen, W. J., Hathaway, J. H., Skorski, D. C., Scott, M. J., Pulsipher, T. C., et al. (2015). Impacts of climate change on energy consumption and peak demand in buildings: A detailed regional approach. Energy, 79, 20–32.
Engle, R. F., Mustafa, C., & Rice, J. (1992). Modelling peak electricity demand. Journal of Forecasting, 11(3), 241–251.
Engle, R. F., & Granger, C. W. J. (1987). Cointegration and error correction representation: Estimation and testing. Econometrica, 55(2), 251–276.
Gielen, D., Boshella, F., Sayginb, D., Bazilianc, M. D., Wagner, N., & Gorinia, R. (2019). The role of renewable energy in the global energy transformation. Energy Strategy Review, 24, 38–50.
Grossman, Gene. M., Alan, B. Krueger. (1991). Environmental Impact of a North American Free Trade Agreement. Working Paper 3914. National Bureau of Economic Research, Cambridge, MA.
Hekkenberg, M., Benders, R. M. J., Moll, H. C., & Schoot Uiterkamp, A. J. M. (2009). Indications for a changing electricity demand pattern: The temperature dependence of the electricity demand in the Netherlands. Energy Policy, 37(4), 1542–1551.
Intergovernmental Panel on Climate Change. 4th Assessment Report. (2007) .Climate Change. http://www.ipcc.ch/ipccreports/ar4-syr.htm (2008–11–24).
Johansen, S. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59, 1551–1580.
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration – with applications to the demand for money. Oxford Bulletin of Economics and Statistics., 52(2), 169–210.
Kumari, P., Kapur, S., Garg, G., & Kumar, K. (2020). Effect of Surface Temperature on Energy Consumption in a Calibrated Building: A Case Study of Delhi. MDPI: Climate.
Misra, A. K. (2014). Climate change and challenges of water and food security. International Journal of Sustainable Built Environment, 3(1), 153–165.
Mohd Shahidan, S., Zulkefly, A., & Noorazeela, Z. A. (2020). The Effects of Energy Consumption and National Output on CO2 Emissions: New Evidence from OIC Countries Using a Panel ARDL Analysis. Sustainability, 2020(12), 3312.
Mosikari, T. J., & Eita, H. J. (2020). CO2 emissions, urban population, energy consumption and economic growth in selected African countries A Panel Smooth Transition Regression (PSTR). OPEC Energy Review, 44(3), 319–333.
Pardo, A., Meneu, V., & Valor, E. (2002). Temperature and seasonality influences on Spanish electricity load. Energy Economics., 24(1), 55–70.
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics, 16(3), 289–326.
Pesaran, M. H., Shin, Y. (1999). An autoregressive distributed lag modelling approach to cointegration analysis. Econometrics and Economic Theory in the 20th Century: the Ragnar Frisch Centennial Symposium. Cambridge Univ. Press, Cambridge; pp. 1–31.
Petrick, S., Rehdanz, K., Tol, R. S. J. (2010). The Impact of Temperature Changes on Residential Energy Consumption. Working paper N 1618, Kiel Institute for the World Economy, Hindenburgufer 66, 24105 Kiel, Germany.
Ralston, F. F., Jaramillo, P., & Berges´, M., Severnini, E. . (2019). Seasonal effects of climate change on intra-day electricity demand patterns. Climatic Change, 154, 435–451.
Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62–70.
Sharma, A., Kumar, H. (2019). Seasonal variation on electricity consumption of academic building- a case study. Journal of Thermal Energy System 2(2).
Shu-Yi, L. S., Chen, C.-C., & Hsu, C.-S. (2018). The Non-Linear Relationship between Electricity Consumption and Temperature in Taiwan: An Application for STR (Smooth Transition Regression) Model. Modern Economy, 9, 587–605.
To, W. M., Lee, P. K. C., & Lai, T. M. (2017). Modeling of Monthly Residential and Commercial Electricity Consumption Using Nonlinear Seasonal Models—The Case of Hong Kong. Energies Energies, 2017(10), 885.
Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector auto regressions with possibly integrated processes. Journal of Econometrics, 66, 225–250.
Tol, R. S. J. (2009). The economic effect of climate change. Journal of Economic Perspectives, 23(2), 29–51.
Valor, E., Meneu, V., & Caselles, V. (2001). Daily Air Temperature and Electricity Load in Spain. Journal of Applied Meteorology., 40, 1413.
Wang, H., & Chen, Q. (2014). Impact of climate change heating and cooling energy use in buildings in the United States. Energy Build., 82, 428–436.
Zhou, Y., Clarke, L., Eom, J., Kyle, P., Patel, P., Kima, H. S., et al. (2014). Modeling the effect of climate change on U.S. state-level buildings energy demands in an integrated assessment framework. Applied Energy., 113, 1077–1088.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
JBIR, R. Temperature, energy consumption, and Co2 emission: testing for nonlinearity on USA Economy. Environ Dev Sustain 23, 12434–12445 (2021). https://doi.org/10.1007/s10668-020-01176-0
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10668-020-01176-0

