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ASSIGMENT 3

proc import datafile='/folders/myfolders/Data.csv' out=work.NData replace; Data don; set NData; /* urban rate */ if urbanrate <=20 then urban=1; if urbanrate >20 and  urbanrate<=40 then urban=2; if urbanrate >40 and  urbanrate<=60 then urban=3; if urbanrate >60 and  urbanrate<=80 then urban=4; if urbanrate >80  then urban=5; /* Electric */ if relectricperperson <=110 then electric=1; if relectricperperson >110 and  relectricperperson<=400 then  electric=2; if relectricperperson >400 and  relectricperperson<=800 then  electric=3; if relectricperperson >800 and  relectricperperson<=2000 then  electric=4; if urbanrate >2000  then electric=5; proc freq; table continent urban electric; run;

Based on the above frequency table:

We note that 54 percent of the population lives in a rural area. This is implied by the urban rate being less than 60.

  This might justify that about 73 percent of people are using less than 800 kWh a month.

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Assisgment 2

Result

For this work I have edited the variable by grouping them.

For the continent

I have grouped the countries by continent and we ranked about 25% in Africa and 24% in Asia as continent.

 For the income

I have grouped the income by lot:

We observed that the rank 4 has the highest percentage or 29.8% follow by the rank 1 with about 26%.

 For the electricity

I have grouped the consumption by lot:

We observed that the rank 1 has the highest percentage or 43%  of  the observation.

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Topic:Is electricity consumption associated with income?

After going through the various codebook, I have chosen the GapMinder.

my area of interest is how is electricity consumption related to income. The variables are:

1-electricity consumption per person

2- income per person

 Electricity consumption will be our starting point. I need to determine what affect electricity consumption

I am working for an energy company and I want to know if energy consumption is function of income.

is that relationship depending on geographic location? For this i will create a variable assigning each country to a continent such as Asia, Africa, Europe, North American, South America or ocean

and see if the geographic location is affecting the relation energy consumption and income.

Literature Review

The pioneering paper on the relation Energy and income is the work of Kraft and Kraft (1978). the paper evidence the existence of a unidirectional causality from GNP growth to energy consumption in the United States of America for the period of 1947 to 1974. Another study of Yu, et al. (1988) found a negative relation between Energy and employment in the United States of America. In the same direction Yu and Chai (1985) found that consumption of energy induced GDP in the case of Philippines which is the opposite of what they observed in the republic of Korea where GDP rather support energy consumption. Despite the effect being positive or negative the above studies support the existence of a relationship between Energy and Income.

However, the study of Erol, and Yu, (1987) which could not evidence any causal relationship between energy and GDP growth for Six industrialized countries. Which is in line with Yu, et al. (1988) connected a study supporting no relationship between Energy and GNP in the United States of America.

The two above sections shed some light of the undecided relation between energy and Income per Capita. When observed the relation exist and it seems to change according to geographic location.

This justify our topic is energy consumption induced by income per capita? and is that relation depending on the geographic location such as continent? The variables in our analysis are going to be:

Energy consumption per capital (to capture the energy consumption).

The income per capita which is the Gross Domestic Product.

The continent to which is the country is mapped.

 Reference used:

Erol, U. and E.S.H. Yu, 1987a. “On the relationship between energy and income for industrialized counties”, Journal of Energy and Employment, pp. 13, 113-122.

Kraft, J. and A. Kraft, 1978. “On the relationship between energy and GNP”, Journal of Energy and

Development, 3, pp. 401-403.

Erol, U. and E.S.H. Yu,           1988. “Some recent developments in a concept of causality”,

Journal of Econometrics

, 39,

pp. 199-211.