•We examine the effect of human capital on energy consumption for a panel of OECD economies over the period 1965–2014.•Our results suggest that human capital reduces aggregate energy consumption by ...15.36%.•We find that human capital is associated with a 17.33% decrease in dirty energy consumption and an 85.54% increase in clean energy consumption.•Our findings emphasize the social benefits of investing in human capital
We examine the effect of human capital on energy consumption for a panel of OECD economies over the period 1965–2014. Our preferred results, which account for cross-sectional dependence and structural breaks, suggest that a one standard deviation increase in human capital reduces aggregate energy consumption by 15.36%. When we distinguish between clean and dirty energy consumption, we find that human capital generates significant positive externalities for the environment. Specifically, we find that a one standard deviation increase in human capital is associated with a 17.33% decrease in dirty energy consumption and an 85.54% increase in clean energy consumption. Our findings reinforce the social benefits of investing in human capital and suggest a promising avenue for energy conservation without impeding economic growth.
Understanding the dynamics of carbon emissions across time and space is important when formulating energy policies to minimise climate changes in the future. If per capita carbon emissions (or carbon ...intensity) converge over time, then any negotiation of multilateral agreements will be easier than if convergence is absent. It is also possible for club convergence to exist where countries within a club converge but countries between clubs do not converge. We examine the convergence of consumption-based and territory-based carbon emissions intensity across 70 countries. We find two convergent clubs for consumption-based emissions and three convergent clubs for territory-based emissions. Increases in each of total factor productivity, renewable energy consumption and urbanisation increase the odds of belonging to a low carbon emissions intensity club. An increase in industry value added reduces the odds of belonging to a low carbon intensity club. Increases in total factor productivity can be obtained through effective macroeconomic policy, while increasing renewable energy consumption may require structural changes in economies focused on transitioning to a low carbon economy. Under a business as usual forecasting scenario the number of consumption-based carbon emissions intensity clubs increases between 2014 and 2030 making it more difficult to negotiate multilateral agreements on climate change in the future.
•Examine the convergence of consumption-based and territory-based carbon emissions intensity across 70 countries.•There are two convergent clubs for consumption-based emissions and three convergent clubs for territory-based emissions.•Increases in TFP, REC and urbanization increase the odds of belonging to a low carbon emissions intensity club.•An increase in industry value added reduces the odds of belonging to a low carbon intensity club.•Forecast club convergence to 2030.
The postpartum period is a challenging transition period with almost one in ten mothers experiencing depression after childbirth. Perceived social support is associated with mental health. Yet ...empirical evidence regarding the causal effects of social support on postpartum mental health remains scarce. In this paper, we used a nationally representative panel data of women to examine causality between perceived social support and postpartum mental health. We used fixed-effect method and included dependent variable lags to account for past mental health condition before birth (i.e., the pre-pregnancy and prenatal periods). The study also used an instrumental variable approach to address endogeneity. We find a declining trend in postpartum mental health between 2002 to 2018. Our study also showed that past mental health (i.e., before childbirth) is positively correlated with postpartum mental health. A universal routine mental health screening for expectant and new mothers should remain a key priority to ensure mental wellbeing for the mothers and their infants.
Carbon dioxide (CO2) emissions play an important role in global warming. Consequently, studying the relationship between CO2 emissions and economic development is important, especially when viewed ...from a historical perspective. We test the Environmental Kuznets Curve (EKC) hypothesis for a panel of 20 OECD nations, dating back to the first globalization boom in the nineteenth century. Utilising recently developed panel data estimators that account for cross-sectional dependence and parameter heterogeneity, for the period 1870 to 2014, we find support for the EKC hypothesis for the panel as a whole with three of our preferred four estimators, with turning points in income per capita that lie between $18,955 and $89,540 (in 1990 US$). Country-specific results, however, only provide mixed support for the EKC hypothesis. Specifically, we find evidence of an EKC for nine of the 20 countries, with five exhibiting a traditional inverted U-shaped relationship, three exhibiting an N-shaped relationship and one, an inverted N-shaped relationship.
•We test the Environmental Kuznets Curve (EKC) hypothesis for OECD nations.•We use data that dates back to the first globalization boom in the nineteenth century.•Our estimators account for cross-sectional dependence and parameter heterogeneity.•We find support for the EKC hypothesis for the panel as a whole.•Country-specific results provide mixed support for the EKC hypothesis.
•Analyse the dynamics of energy productivity for Australian states and territories.•Australian states and territories converge to two energy productivity clubs.•New South Wales and Victoria will be ...the forerunners in maintaining higher energy productivity in 2030.
The Australian government has recently launched a National Energy Productivity Plan that calls for a 40% increase in energy productivity (economic output divided by energy use) before 2030. Improving energy productivity would help boost economic competitiveness, reduce energy costs, and reduce carbon dioxide emissions in Australia. Understanding energy productivity dynamics at the state level is essential for the success of this program. This research analyses the convergence path of energy productivity in Australian states and territories. Club convergence analysis applied to data over the period 1990–2015 reveals two converging energy productivity clubs. Initial energy productivity, industry structure, and automobile fuel prices are important determinants of higher energy productivity. Based on Australian state energy productivity forecasts to 2030, New South Wales and Victoria will be the forerunners in maintaining higher energy productivity in 2030. Australia will not achieve a 40% increase in energy productivity before 2030 without significant changes to its fuel mix and industry structure.
This research analyses the convergence of residential electricity prices in 22 European countries between 1995 and 2019. The findings reveal the existence of two sub-convergent clubs of residential ...electricity prices. Half of the countries studied belong to the club with higher residential electricity prices, while the other half belong to the lower-price club. Household income increases the probability of belonging to the club of lower residential electricity prices. An increase in heating degree days decreases the probability of belonging to the club of lower residential electricity prices. A similar effect is observed for the price of non-renewable energy sources used in electricity production. Further, although a country's likelihood of belonging to the club of lower residential electricity prices diminishes with a rise in the share of renewable electricity production, the converse pattern is obtained at the residential level, such that residential renewable electricity share has a beneficial effect. Our findings suggest that households have benefitted in paying lower prices for renewable sourced electricity. Therefore, this research indicates that ongoing clean energy initiatives and the availability of affordable substitutes for conventionally generated electricity are being realized to a certain extent, improving electricity markets for the countries we analysed.
The study predicts ex-ante financial distress in small and medium-sized enterprises (SMEs) and examines its significance in entrepreneurial activity. Thus, the study provides the dynamic ...characterization of the link between financial distress, employment and the growth in the establishment of SMEs. The study further examines employees’ welfare and financial distress of SMEs. The results reveal that financial ratios and market variables are significant in predicting financial distress risks. In the wake of financial distress, the results reveal contractions in the growth of SMEs. In addition, financial distress in SMEs induces an adverse effect on the level of employment and a reduction in employees’ welfare.
The study examines the determinants of financial crises. The paper applies extreme bounds analysis on a panel of countries to test the robustness of 43 variables in capturing varying financial ...crises. At a stricter bound and keeping the growth rate of real gross domestic product per capita constant, regulation emerges as the most indispensable factor for the control of episodes of financial crises. Characterizing the potential dynamic relationship among the variables of interest, growth in real gross domestic product per capita, regulation, remittance, global stock volatility, institutional quality, and export and import of goods and services robustly relate with financial crises. While these variables are important, in recent times and under a coefficient normality assumption, more variables emerge as robust determinants of financial crises. An examination of each type of crisis reveals that inflation is an indispensable factor in the occurrence of any type of crisis.
We employ the recently developed LM and RALS-LM unit root tests that allow for endogenously determined structural breaks to study stochastic convergence in relative per capita CO2 emissions over the ...period 1921 to 2014 for a balanced panel of emerging market economies. The results provide mixed evidence of the presence of stochastic convergence. In particular, stochastic convergence is achieved for eleven out of the seventeen countries under investigation. This implies that the energy regulatory framework in these countries needs to be revaluated in order to reduce the carbon footprint. To further comprehend the factors behind the observed disparities in emission stability, we analyse the determinants of the identified groups. An examination of the determinants of the observed behaviour in relative per capita CO2 emissions reveal that income, population, financial development and trade are significant drivers, with trade predominantly playing a larger role in emission growth. Also, weak evidence is found in terms of a catching-up effect in the growth of relative per capita CO2 emissions.
•We study stochastic convergence in relative per capita CO2 emissions.•We use a balanced panel of emerging market economies over the period 1921 to 2014.•We employ the recently developed LM and RALS-LM unit root tests.•The results provide mixed evidence of the presence of stochastic convergence.
This research analyses the non-linear and complex effects of drivers of system imbalance prices in the GB electricity market. Unlike day-ahead prices, the balancing settlement prices are ...comparatively under-researched, yet their importance is growing with greater market risks. The fundamental drivers of these prices are analysed over 2016-2019. The result of a non-linear modelling approach reveals that system imbalance price exhibits a regime-switching behaviour, driven by weather and demand forecast errors, as well as other system effects. Surprisingly, balancing prices are predictable out of sample and a regime switching specification is more accurate than a linear model for prediction.
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