Are shocks to natural gas consumption transitory or permanent? A more powerful panel unit root test on the G7 countries

• Published in: Natural resources forum Vol. 43; no. 2; pp. 111 - 120
• Main Authors: Cai, Yifei, Magazzino, Cosimo
• Format: Journal Article
• Language: English
• Published: Oxford, UK Blackwell Publishing Ltd 01.05.2019; Wiley Subscription Services, Inc
• Subjects: Economic models; Empirical analysis; Energy consumption; Energy demand; Energy management; Energy policy; G7 countries; Natural gas; Natural gas consumption; panel unit root; Purchasing power parity; structural breaks; Test procedures

This article re‐examines the persistence in natural gas consumption using an alternative methodology. We compare the results of traditional panel unit root tests with those provided by Bahmani‐Oskooee et al., which allow for both sharp and smooth breaks. Our analysis uses data for the G7 countries o...