Does Final Energy Demand in Portugal Exhibit Long Memory? A Fractional Integration Analysis

In this paper, we measure the degree of fractional integration in final energy demand in Portugal using an ARFIMA model with and without adjustments for seasonality. We consider aggregate energy demand as well as final demand for petroleum, electricity, coal, and natural gas. Our findings suggest the presence of long memory in all of the components of energy demand. All fractional-difference parameters are positive and lower than 0.5 indicating that the series are stationary, although with mean reversion patterns slower than in the typical short-run processes. These results have important implications for the design of energy policies. As a result of the long-memory in final energy demand, the effects of temporary policy shocks will tend to disappear slowly. This means that even transitory shocks have long lasting effects. Given the temporary nature of these effects, however, permanent effects on final energy demand require permanent policies. This is unlike what would be suggested by the more standard, but much more limited, unit root approach, which would incorrectly indicate that even transitory policies would have permanent effects

Black carbon trends in southwestern Iberia in the context of the financial and economic crisis. The role of bioenergy.

Since black carbon concentrations are useful to reveal changes in anthropogenic activities, measurements taken from 2007 to 2015 in a Portuguese city are used to assess to which extent the ambient air was impacted by the economic crisis. The average black carbon concentrations are representative of an urban area of small size (1.3 ± 1.3 μg m−3). The highest concentrations are observed in the heating season, being biomass combustion one of the causes for the high values. The daily cycle of black carbon concentrations presents both morning and evening peaks, mainly due to road traffic and, in the heating season, to domestic heating as well. The yearly averaged black carbon mass concentrations decreased 33 % from 2007 to 2015, possibly due to a combination of the economic recession and environmental legislation. The reduction in road traffic led to a decrease in the daily morning peak from 2007 to 2015. This reduction was not followed by a decrease in the evening peak, explained by an increase in biomass burning. Biomass is the cheapest heating fuel in Portugal, and its consumption increased in the aftermath of the economic crisis. The use of bioenergy is an alternative to fossil fuels and presents many advantages. However, energy policies should discourage inefficient biomass burning and promote better ways of exploiting the available energy resources and emission air pollution mitigation strategies.