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QoL Modeling Against Energy Consumption Per Capita

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Abstract

The previous chapter made a brief explanation about energy production and consumption, human development, QoL and its interaction with human energy needs. The capability approach was introduced as an approach to use in this study to construct QoL indicator. Moreover, a review was carried out for previous researches regarding energy and QoL, then emphasized the contribution of this study. This chapter provides a foundation for the rest of chapters through introducing mathematical principles to construct a proposed QoL indicator. The proposed QoL indicator data are modeled against total primary energy supply (TPES) data, to illustrate how QoL changes with variation of the TPES. The results are compared with similar researches in which variation of Human Development Index (HDI) and TPES have been addressed. Some scholars have addressed the relationship between the HDI and energy consumption in terms of the semi-logarithmic or hyperbolic function. One of the results from this relationship is to divide the world countries into two categories, developed and developing countries. According to this classification, pre-developing and developing countries are located into one category (developing), while the proportion of people with fundamental energy needs in the former is far higher than in the latter. The objective of this chapter is to allocate a separate class for pre-developing countries which their fundamental energy needs have not completely satisfied. The methodology section in this chapter is divided into two parts. Initially, based on the longitudinal data (112 country’s data during the period of 2005–2013), a linear QoL indicator is proposed in terms of six variables. Then an S-shape (sigmoid) curve is fitted to the QoL indicator data against TPES per capita (or Energy consumption per capita, ECpc) and electricity consumption per capita (Elcpc) data. Three types of countries, developed, developing, and pre-developing are identified based on the sigmoid function. The results of the proposed model demonstrate that the “pre-developing” category has different QoL and ECpc as compared to developing and developed classes that demands different energy policy in global energy strategy establishment. Another result of this chapter is that the entry of new technologies has influenced the QoL and Elcpc to a greater extent in developing countries than in developed countries. One-way analysis of variance is a method to shed light on the latter consequence. In the case of pre-developing countries, the pertinent analysis shows an insignificant impact. This chapter concludes the new classification of countries appropriately addresses variation of QoL against ECpc in each class.

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Notes

  1. 1.

    Fundamental energy needs contains cooking, heating, cooling, and lighting, which is required for human survival.

  2. 2.

    The basic needs consists energy for cooking, heating, lighting, cooling, and energy services for educational and health centers as well as income generation [16].

  3. 3.

    Productive uses of energy makes sure that energy access translates into employment, additional income and ultimately better living conditions for entrepreneurs, employees and their families [17].

  4. 4.

    FA may be used to model the observed variables as a linear combination of potential loading factors and error term [21]. It can also be applied as an unsupervised method for classification and to understand the loading factor’s pattern or structure [22,23,24].

  5. 5.

    FA does not assume independence between explanatory variables because of the correlation matrix, while other econometrics methods such as multiple linear regression, assume independence between explanatory variables to prevent multicollinearity [26].

  6. 6.

    The slow increase in the QoL is illustrated in the logarithmic value of ECpc (Elcpc), while it represents that a little amount of energy in pre-developing countries changes their QoL significantly.

  7. 7.

    The concept of optimization programming as well as outlier data may be used to obtain the boundaries of the efficient and inefficient areas [46]. Usually, some parameters (e.g. each country distance from the sigmoid curve, cut off threshold) are defined to determine these boundaries. Therefore, changing the parameters changes the efficient and inefficient areas. One of the candidates for the upper bound of the inefficient area is QoL2 or QoL1 is a candidate for the lower bound of the efficient area.

  8. 8.

    ECpc analysis may be criticized similar to the energy intensity such as demographic and geographic structures. This paper assumes any potential way to reduce energy consumption through maintaining QoL. Yet, according to the International Energy Agency data, the residential energy consumption of Iceland, Qatar, and Trinidad & Tobago is respectively 14.7, 7.4, and 3.2% of the total final energy consumption in 2013 [47].

  9. 9.

    The blue line is fitted for the pair HDI and Logarithmic value of Elcpc, while the hyperbolic curve is obtained by fitting HDI data against Elcpc.

  10. 10.

    Some of these countries include Switzerland, United Kingdom, Denmark, France, and Germany.

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Appendices

Appendix 1

The names of 112 countries have been ordered in Table 2.7 alphabet.

Table 2.7 List of 112 countries applied in the QoL indicator as well as sigmoid function

Appendix 2: K-Means Algorithm Steps

Suppose X = [x1, x2,…, xn] is a real vector of observations which needs to be clustered into k (≤n) sets, S = {s1, s2,…, sk}. Thus, the following steps are implemented to obtain the S set:

First: The initial centroids, {s1, s2,…, sk}, are selected randomly. Then, each observation is assigned to a cluster which its mean yields the least within-cluster sum of squares (WCSS);

Second: The centroid is considered the mean of the points in the cluster (µi = si, i = 1,…,k);

Third: The Euclidean distance is usually applied to measure the closeness of the data to the special cluster,

$$s_{i} = \left\{ {x_{l} :\left\| {x_{l} - \mu _{i} } \right\|^{2} \le \left\| {x_{l} - \mu _{j} } \right\|^{2} \forall j,1 \le j \le k} \right\},l = 1,2, \ldots ,n$$
(2.23)

where each xl is assigned to just one si.

Fourth: The K-means will converge for the common similarity measure mentioned above to yield the least WCSS.

Fifth: The steps above are iterated until relatively few points change clusters.

Appendix 3: Variation of the Six Variables Plus Energy and Electricity Consumption During 9 Years

The following table demonstrates the progress or the regress of each country, during a period of time at which they belonged to the pre-developing class. Calculations were carried out based upon two years (the first and last years) which a country was in the pre-developing class. For instance, the MYS values [normalized value based on Eq. (2.1)] for Angola were 0.25 and 0.219 for the year 2005 and 2013, respectively (decreasing trend). In this case, the regressed value equals to 0.876. Majority of countries had a decreasing or increasing trend. There was a rare situation in which a variable in a country did not have a trend. Therefore, by assuming a decreasing or increasing trend in the variables, the last row of the following table displays the slow progress for three variables of the QoL indicator (IHR, GNI, and IWA) as well as Elcpc and ECpc variables. A significant regress is observable for the rest of variables (MYS, GDP, and LEB). In contrast, the QoL value has been had a slight regress during of nine years. Despite the increase in the energy consumption, some of the QoL variables in pre-developing class came across a significant decrease, and others faced a slight increase (Average Elcpc increase, without a change in the average QoL). Generally, mismanagement, high rate of poverty (limited power over their work and business), and war can cause such unexpected changes (Table 2.8).

Table 2.8 Progress/regress of QoL and energy variables

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Nadimi, R. (2019). QoL Modeling Against Energy Consumption Per Capita. In: Relationship Between Quality of Life and Energy Usage. Springer, Singapore. https://doi.org/10.1007/978-981-13-7840-9_2

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