The price and income elasticities of natural gas demand: International evidence
Date
2016-09-16
Authors
Burke, Paul J.
Yang, Hewen
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Publisher
Elsevier
Abstract
Natural gas contributes a growing share of the world's energy mix. In this paper we use national-level data for a sample of 44 countries to estimate the price and income elasticities of natural gas demand. We present both single-equation results and results instrumenting natural gas prices with proved natural gas reserves. Our instrument includes both domestic reserves and distance-weighted reserves in other countries. We obtain estimates of the average long-run price elasticity of natural gas demand of around −1.25 and of the average long-run income elasticity of natural gas demand of +1 and higher. We also present separate estimates for final natural gas demand by industry and households.
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Keywords
natural gas, price, income, elasticity, demand
Citation
Burke, Paul J. and Yang, Hewen. 2016. “The price and income elasticities of natural gas demand: International evidence.” Energy Economics 59: 466–474.
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Energy Economics
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Journal article
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Pre-print ANU working paper