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Environmental Science and Pollution Research

, Volume 25, Issue 18, pp 17289–17299 | Cite as

Stochastic convergence of renewable energy consumption in OECD countries: a fractional integration approach

  • Sakiru Adebola Solarin
  • Luis Alberiko Gil-Alana
  • Usama Al-Mulali
Research Article

Abstract

In this article, we have examined the hypothesis of convergence of renewable energy consumption in 27 OECD countries. However, instead of relying on classical techniques, which are based on the dichotomy between stationarity I(0) and nonstationarity I(1), we consider a more flexible approach based on fractional integration. We employ both parametric and semiparametric techniques. Using parametric methods, evidence of convergence is found in the cases of Mexico, Switzerland and Sweden along with the USA, Portugal, the Czech Republic, South Korea and Spain, and employing semiparametric approaches, we found evidence of convergence in all these eight countries along with Australia, France, Japan, Greece, Italy and Poland. For the remaining 13 countries, even though the orders of integration of the series are smaller than one in all cases except Germany, the confidence intervals are so wide that we cannot reject the hypothesis of unit roots thus not finding support for the hypothesis of convergence.

Keywords

Convergence Renewable energy consumption Unit roots Fractional integration 

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Sakiru Adebola Solarin
    • 1
  • Luis Alberiko Gil-Alana
    • 2
  • Usama Al-Mulali
    • 1
  1. 1.Centre for Globalisation and Sustainability ResearchMultimedia UniversityMelakaMalaysia
  2. 2.Universidad de Navarra Faculty of Economics and Business Administration Edificio BibliotecaPamplonaSpain

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