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Energy Demand Elasticities in Industrialized Countries: A Survey

George Kouris

Year: 1983
Volume: Volume 4
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No3-5
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Abstract:
A high price elasticity for energy demand implies a long-term ability of the economy to absorb the impact of higher energy prices. Thus price shocks, after generating pronounced inflationary and recessionary effects over the short term, do not act as a constraint to economic growth over the longer term. By contrast, a low price elasticity implies weak reactions to increasing energy costs and a protracted adverse effect on output and inflation. Unfortunately, a survey of the literature on energy demand elasticities shows diverse results. Should econometric results be used for policymaking and planning, then a critical and eclectic attitude is imperative to screen out the most relevant aspects of the empirically determined price elasticities.



Residential Electricity Demand Modeling in the Australian Capital Territory: Preliminary Results

W. A. Donnelly

Year: 1984
Volume: Volume 5
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol5-No2-8
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Abstract:
The demand for electricity has recently become a topic of major interest in Australia, where very little empirical analysis has been done (see Hawkins, 1975; Saddler et al., 1980; Department of National Development and Energy, 1981; Brian and Schuyers, 1981; and Donnelly and Saddler, 1982). Two of the policy issues being raised concern the appropriate pricing strategies that should be adopted by supplying authorities and the need for additional generating capacity. An understanding of the relative importance of the factors influencing electricity demand is required to aid public policy making, particularly since substantial investment is now being considered.



Oil Demand Elasticities in Nigeria

Felix B. Dayo and Anthony O. Adeghulugbe

Year: 1987
Volume: Volume 8
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No2-3
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Abstract:
Crude oil, which was first discovered in Nigeria in 1956 by the Shell-BP Development Company, has contributed significantly to the country's economic development. The exploitation of this resource transformed Nigeria's balance of trade from chronic deficits to huge surpluses (especially during the early-to-mid 1970s). This occurred as a result of the increase in the volume as well as the value of crude oil during this period. However, the surplus started to decline in the mid-1970s due to a combination of increased imports (resulting from the oil-boom mentality that had developed) and reduced crude oil exports (caused by the downward trend in world economic situations). By late 1977 the country again had a deficit on visible trade.



Deriving Electricity Demand Elasticities from a Simulation Model

M.F. Morss and J.L. Small

Year: 1989
Volume: Volume 10
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-4
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Abstract:
The paper reports a method of estimating aggregate residential electricity demand elasticities with respect to price and household income. Short-run models of electricity use and linear probability models of equipment ownership are developed using household data. These are incorporated in a model that simulates the development of the stock of dwellings and electricity-using equipment through time to derive short and long-run price and income elasticities. Results for a wide range of equipment types are presented. Test results reveal the influence of dwelling stock dynamics on long-run aggregate elasticities that have not been reported in other studies.



Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia

Susan Olivia and John Gibson

Year: 2008
Volume: Volume 29
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No1-2
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Abstract:
The proper design of price interventions in energy markets requires consideration of equity and efficiency effects. In this paper, budget survey data from 29,000 Indonesian households are used to estimate a demand system for five energy sources, which is identified by the spatial variation in unit values (expenditures divided by quantities). We correct for the various quality and measurement error biases that result when unit values are used as proxies for market prices. The price elasticities are combined with tax and subsidy rates to calculate the marginal social cost of price changes for each item. The results suggest that even with high levels of inequality aversion there is a case for reducing the large subsidies on kerosene in Indonesia, supporting the reforms that have been announced recently.





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