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Nordhaus, W., & Chen, X. (2012). Improved Estimates of Using Luminosity as a Proxy for Economic Statistics: New Results and Estimates of Precision. Cowles Foundation Discussion Paper, (1857).
Abstract: Previous work has analyzed whether luminosity data contain useful information for estimating economic output and concluded that there was significant promise for regions with poor quality economic statistics. The present paper examines alternative measures of the precision of the estimates using bootstrap and prior estimates of the errors for both the luminosity quality and the national accounts quality. Based on the new results, we conclude: First, for countries with high quality systems, there is no reason to use luminosity data as a supplement to standard data in any context where standard data are available. Second, we find that there is no advantage at present of using lights data for time-series corrections for any purposes where standard data are available. Third, for countries with low quality statistical systems, the estimates suggest that there may be substantial information in the luminosity data for cross-sectional estimates of output. Fourth, the major concerns about the use of lights as a proxy involve uncertainties about the precision of standard national accounts data. Finally, we recommend that future work be concentrated on integrating luminosity data into the cross sectional estimates of national and regional output primarily for countries with poor quality statistical systems.
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Nordhaus, W., & Chen, X. (2014). A sharper image? Estimates of the precision of nighttime lights as a proxy for economic statistics. J of Econ Geog, 15(1), 217–246.
Abstract: Much aggregate social-science analysis relies upon the standard national income and product accounts as a source of economic data. These are recognized to be defective in many poor countries, and are missing at the regional level for large parts of the world. Using updated luminosity (or nighttime lights) data, the present study examines whether such data contain useful information for estimating national and regional incomes and output. The bootstrap method is used for estimating the statistical precision of the estimates of the contribution of the lights proxy. We conclude that there may be substantial cross-sectional information in lights data for countries with low-quality statistical systems. However, lights data provide very little additional information for countries with high-quality data wherever standard data are available. The largest statistical concerns arise from uncertainties about the precision of standard national accounts data.
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Olsen, R. N., Gallaway, T., & Mitchell, D. (2014). Modelling US light pollution. Journal of Environmental Planning and Management, 57(6), 883–903.
Abstract: This paper uses a unique US dataset to study the economic causes of light pollution at the local (county) level. Light pollution has been shown to have negative consequences for both wildlife and humans. Light pollution is a form of pollution commonly ignored by environmental professionals. Traditionally, light-pollution models focus on population-based explanations. This paper confirms the importance of population in understanding light pollution. However, the results highlight the importance of economic variables, especially local economic development, in explaining the existence and extent of light pollution. Estimated models show, for example, that local employment patterns, personal income, roads and energy use are all important explanatory variables. By highlighting the connections between light pollution and specific types of local economic activity, this paper provides policy makers with additional information that they can use to improve public policies intended to safeguard the environment and local wildlife.
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Omar, N. S., & Ismal, A. (2019). Night Lights and Economic Performance in Egypt. Advances in Economics and Business, 7(2), 69–81.
Abstract: This paper, to the best of my knowledge, is the first to estimate the association between Nighttime Lights (NTL) and real Gross Domestic Product (GDP) at the national level, using sub-national GDP data for the 27 Egyptian governorates over FY08-FY13. The study finds that NTL has a positive and statistically significant
correlation with GDP at the sub-national and national levels. Hence, NTL can measure and predict GDP in Egypt, at the national and sub-national levels. These findings affirm most previous research that NTL could be a good proxy for GDP when official data are unavailable or time infrequent in developing countries.
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Pagden, M., Ngahane, K., & Amin, M. S. R. (2019). Changing the colour of night on urban streets – LED vs. part-night lighting system. Socio-Economic Planning Sciences, in press, 100692.
Abstract: Many cities in the United Kingdom are upgrading the streetlights to white light-emitting diode (LED) lamps for reducing the electricity costs and attaining the sustainable energy solutions. Installation of LED lamps on urban street requires higher installation costs and a long-term period to payback benefits of replacing outdated streetlights in terms of energy savings and costs. To achieve the short-term energy efficiency of urban street lighting, city councils sometimes adopt the part-night lighting system particularly in the residential areas. The Coventry City Council recently replaced 29,701 existing sodium lights with LED lamps. This paper performs the economic analyses to understand the feasibility of two street lighting systems: LED lamps and ‘part-night’ lightings on the Coventry streets during the twenty-year period assuming the return period of investment is twenty years. The projection of energy consumption and costs for LED lamps and part-night lighting systems shows that electricity can be saved by 44% and 21% comparing to current electricity usages, respectively. Considering the budgetary constraints of Coventry City Council, this paper concludes that the part-night lighting system may be beneficial in short-term period, but it is economically feasible to replace the existing lower efficiency lights with LED lamps.
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