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Price Elasticities of Natural Gas Demand in France and West Germany

Abstract:
This article analyzes the own-price elasticities of natural gas and cross-price elasticities between gas and other fuels in France and West Germany. A model with constant substitution elasticities would not give enough information to study interfuel competition. Therefore we adopted a model based on translog functions, which has few restrictions on measuring elasticities of energy demand.

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Energy Specializations: Energy Modeling – Sectoral Energy Demand & Technology; Natural Gas – Markets and Prices

JEL Codes: Q40: Energy: General, Q41: Energy: Demand and Supply; Prices, Q35: Hydrocarbon Resources

Keywords: Price elasticity of natural gas demand, France, Germany, Translog function

DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-5

Published in Volume 10, Number 3 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.

 

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