Efficiency of Energy Taxes and the Validity of the Residential Electricity Environmental Kuznets Curve in the European Union
Abstract
:1. Introduction
2. Contextual Background with a Literature Review
3. Data and Methods
3.1. Data
3.2. Methods
4. Results with Discussion
4.1. Results of Preliminary Analysis
4.2. Regression Results with Discussion
5. Conclusions
Funding
Conflicts of Interest
Appendix A
Variable | Constant Only | Included Trend |
---|---|---|
electricity | −4.8361 (0.000) | −3.9344 (0.000) |
Y | −13.1996 (0.000) | −16.5601 (0.000) |
Pel | −4.5705 (0.000) | −10.2379 (0.000) |
Pgas * | 101.3548 (0.000) | 70.4396 (0.045) |
educ | −5.4527 (0.000) | −11.0494 (0.000) |
tax | −3.9640(0.000) | −11.1558 (0.000) |
climate | −5.2641 (0.000) | −2.7637 (0.003) |
recession | −5.7766 (0.000) | −4.1718 (0.000) |
poverty * | 115.3862 (0.000) | 102.1867 (0.000) |
Electricity | Y | Pel | Pgas | Tax | Poverty | Educ | Climate | Recession | |
---|---|---|---|---|---|---|---|---|---|
electricity | 1.000 | ||||||||
Y | 0.681 * | 1.000 | |||||||
Pel | 0.318 * | 0.691 * | 1.000 | ||||||
Pgas | 0.619 * | 0.653 * | 0.788 * | 1.000 | |||||
tax | −0.077 | −0.204* | −0.049 | 0.016 | 1.000 | ||||
poverty | −0.449 * | −0.47 * | −0.358 * | −0.378 * | 0.020 | 1.000 | |||
educ | 0.503 * | 0.526 * | 0.294 * | 0.342 * | −0.117 * | −0.108 * | 1.000 | ||
recession ** | 0.003 | 0.065 | 0.177 * | 0.171 * | −0.021 | 0.074 | 0.001 | 1.000 | |
climate ** | 0.528 * | 0.169 * | −0.032 | 0.229 * | 0.051 | −0.144 * | 0.294 * | 0.028 | 1.000 |
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Variable | Symbol | Obs | Mean | Std. Dev. | Min | Max | VIF |
---|---|---|---|---|---|---|---|
Household electricity consumption (kWh per capita; tsdpc310, tps00001) | electricity | 336 | 1650.64 | 842.04 | 431.85 | 4.922.77 | |
Real GDP per capita (const EUR; tec00001) | Y | 336 | 24,873.38 | 16,480.54 | 4181.50 | 84,368.38 | 3.62 |
Electricity prices for medium-sized households (const EUR_centi per kWh; ten00117) | Pel | 336 | 15.68 | 5.10 | 6.88 | 29.16 | 4.08 |
Natural gas prices for medium-sized households (const EUR per GJ; ten00118) | Pgas | 292 | 15.358 | 5.95 | 5.10 | 35.90 | 3.28 |
Education—% of population from 15 to 64 with tertiary education (edat_lfs_9903) | educ | 336 | 23.55 | 7.40 | 9.1 | 39.6 | 1.67 |
Recession dummy (1 if real GDP fell in the current year compared with the previous one; 0 otherwise; tec00001) | recession | 336 | 0.24 | 0.43 | 0.00 | 1.00 | 1.08 |
Climate conditions (1 if a country has more than 2200 HDD; 0 otherwise; nrg_chdd) | climate | 336 | 0.095 | 0.29 | 0.00 | 1.00 | 1.20 |
Energy taxes (% of GDP; env_ac_tax) | tax | 336 | 1.91 | 0.42 | 1.11 | 3.13 | 1.14 |
At-risk-of poverty rate (%; ilc_peps01) | poverty | 331 | 16.307 | 3.830 | 8.6 | 26.4 | 1.44 |
Model Type | Model 1: Fixed | Model 2: Fixed | Model 3: Random | Model 4: Random | Model 5: Dynamic | Model 6: Dynamic | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Variable | Estimated Coefficient | Robust St.err. | Estimated Coefficient | Robust St.err. | Estimated Coefficient | Robust St.err. | Estimated Coefficient | Robust St.err. | Estimated Coefficient | Robust St.err. | Estimated Coefficient | Robust St.err. |
electricity (t − 1) | 0.917 * | 0.037 | 0.856 * | 0.058 | ||||||||
Y | 2.797 * | 0.988 | 2.699 ** | 1.010 | 0.333 * | 0.071 | 2.151 ** | 1.037 | 0.034 *** | 0.019 | 1.620 ** | 0.593 |
Y2 | −0.137 ** | 0.051 | −0.131 ** | 0.052 | −0.094 ** | 0.053 | −0.078 ** | 0.029 | ||||
Pel | −0.186 * | 0.063 | −0.177 * | 0.062 | −0.064 * | 0.020 | −0.131 * | 0.039 | ||||
Pgas | 0.046 | 0.045 | 0.041 | 0.048 | 0.019 | 0.024 | 0.027 | 0.033 | ||||
recession | 0.018 ** | 0.008 | 0.015 | 0.009 | 0.015 | 0.010 | −0.005 | 0.007 | ||||
climate | 0.063 * | 0.017 | 0.069 * | 0.019 | 0.039 * | 0.016 | 0.058 ** | 0.028 | ||||
tax | 0.021 | 0.022 | 0.082 ** | 0.039 | 0.077 *** | 0.041 | 0.003 | 0.009 | 0.023 | 0.034 | ||
poverty | 0.000 | 0.004 | 0.001 | 0.004 | 0.000 | 0.001 | 0.001 | 0.002 | ||||
educ | 0.001 | 0.003 | 0.001 | 0.003 | 0.000 | 0.001 | −0.001 *** | 0.001 | ||||
const | −6.875 | 4.913 | −6.572 | 4.937 | 4.144 * | 0.700 | −4.558 | 5.078 | 0.376 | 0.221 | −7.133 ** | 2.828 |
Number of obs. | 336 | 336 | 287 | 287 | 264 | 264 | ||||||
Number of groups/Instruments | 28 | 28 | 25 | 25 | 25 | 25 | ||||||
R2-between | 0.277 | 0.358 | 0.583 | 0.594 | ||||||||
Wald χ2F-test | F(2, 27) = 4.68; p = 0.018 | F(3, 27) = 3,85; p = 0.020 | Wald χ2(8) = 37.44; p = 0.000 | Wald χ2(9) = 38.56; p = 0.000 | F(9, 24) = 1173.77; p = 0.000 | F(10, 24) = 267.97; p = 0.000 | ||||||
AR(1) | Z = −2.44; p = 0.015 | Z = −2.59; p = 0.010 | ||||||||||
AR(2) | Z = 1.62; p = 0.105 | Z = 1.31; p = 0.190 | ||||||||||
Hausman test/Hansen J test | Hausman test: 14.47; p = 0.001 | Hausman test: 11.04; p = 0.012 | Hausman test: 1.41; p = 0.994 | Hausman test: 10.02; p = 0.349 | Hansen J test: χ2(15) = 19.47 p = 0.193 | Hansen J test: χ2(14) = 18.74: p = 0.175 |
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Borozan, D. Efficiency of Energy Taxes and the Validity of the Residential Electricity Environmental Kuznets Curve in the European Union. Sustainability 2018, 10, 2464. https://doi.org/10.3390/su10072464
Borozan D. Efficiency of Energy Taxes and the Validity of the Residential Electricity Environmental Kuznets Curve in the European Union. Sustainability. 2018; 10(7):2464. https://doi.org/10.3390/su10072464
Chicago/Turabian StyleBorozan, Djula. 2018. "Efficiency of Energy Taxes and the Validity of the Residential Electricity Environmental Kuznets Curve in the European Union" Sustainability 10, no. 7: 2464. https://doi.org/10.3390/su10072464