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Open AccessArticle

Can Nighttime Light Data Be Used to Estimate Electric Power Consumption? New Evidence from Causal-Effect Inference

1
School of Economics and Management, China University of Geosciences, Wuhan 430074, China
2
Research Center of Resource and Environmental Economics, China University of Geosciences, Wuhan 430074, China
3
Center for Energy and Environmental Policy, University of Delaware, Newark, DE 19716, USA
4
Sustainable Minerals Institute, University of Queensland, Brisbane, St. Lucia 4072, Australia
*
Author to whom correspondence should be addressed.
Energies 2019, 12(16), 3154; https://doi.org/10.3390/en12163154
Received: 18 July 2019 / Revised: 10 August 2019 / Accepted: 13 August 2019 / Published: 16 August 2019
(This article belongs to the Special Issue Revisiting the Nexus between Energy Consumption and Economic Activity)
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PDF [1971 KB, uploaded 16 August 2019]
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Abstract

Nighttime light data are often used to estimate some socioeconomic indicators, such as energy consumption, GDP, population, etc. However, whether there is a causal relationship between them needs further study. In this paper, we propose a causal-effect inference method to test whether nighttime light data are suitable for estimating socioeconomic indicators. Data on electric power consumption and nighttime light intensity in 77 countries were used for the empirical research. The main conclusions are as follows: First, nighttime light data are more appropriate for estimating electric power consumption in developing countries, such as China, India, and others. Second, more latent factors need to be added into the model when estimating the power consumption of developed countries using nighttime light data. Third, the light spillover effect is relatively strong, which is not suitable for estimating socioeconomic indicators in the contiguous regions between developed countries and developing countries, such as Spain, Turkey, and others. Finally, we suggest that more attention should be paid in the future to the intrinsic logical relationship between nighttime light data and socioeconomic indicators. View Full-Text
Keywords: electric power consumption; nighttime light data; panel econometrics; panel Granger causality electric power consumption; nighttime light data; panel econometrics; panel Granger causality
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).
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Zhu, Y.; Xu, D.; Ali, S.H.; Ma, R.; Cheng, J. Can Nighttime Light Data Be Used to Estimate Electric Power Consumption? New Evidence from Causal-Effect Inference. Energies 2019, 12, 3154.

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