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The Demand for Natural Gas: A Survey of Price and Income Elasticities

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  • Mohammed A. Al-Sahlawi
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    Abstract

    My purpose has been to survey and review price and income elasticities of the demand for natural gas. The surveyed studies are classified by demand type, where the functional forms, estimation techniques, data types, estimated periods and concerned countries or regions are indicated. Studies have demonstrated that there is variation in price and income elasticity estimates. These discrepancies are due to differing estimated periods, various data sources, structural changes, geographical differentials, and the distinction between different demand types. In the short run, it appears that industrial demand and residentialcommercial demand are inelastic with respect to price and income. Industrial demand is more responsive to income than residentialcomercial demand in the short run as well as in the long run. This might be caused by the differences between natural gas end uses.

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    Bibliographic Info

    Article provided by International Association for Energy Economics in its journal The Energy Journal.

    Volume (Year): Volume 10 (1989)
    Issue (Month): Number 1 ()
    Pages: 77-90

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    Handle: RePEc:aen:journl:1989v10-01-a07

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    Cited by:
    1. Eirik Lund Sagen & Marina Tsygankova, 2006. "Russian Natural Gas Exports to Europe. Effects of Russian gas market reforms and the rising market power of Gazprom," Discussion Papers 445, Research Department of Statistics Norway.
    2. Dahl, Roy Endre & Ogland, Atle & Osmundsen, Petter & Sikveland, Marius, 2011. "Are oil and natural gas going separate ways in the UK? Cointegration tests with Structural shifts," UiS Working Papers in Economics and Finance 2011/5, University of Stavanger.
    3. Wang, Ting & Lin, Boqiang, 2014. "China's natural gas consumption and subsidies—From a sector perspective," Energy Policy, Elsevier, vol. 65(C), pages 541-551.
    4. Marina Tsygankova, 2007. "The export of Russian gas to Europe: breaking up the monopoly of Gazprom," Discussion Papers 494, Research Department of Statistics Norway.
    5. Dahl, Carol A., 1993. "A survey of energy demand elasticities in support of the development of the NEMS," MPRA Paper 13962, University Library of Munich, Germany.
    6. Yoo, Seung-Hoon & Lim, Hea-Jin & Kwak, Seung-Jun, 2009. "Estimating the residential demand function for natural gas in Seoul with correction for sample selection bias," Applied Energy, Elsevier, vol. 86(4), pages 460-465, April.
    7. Franziska Holz & Christian von Hirschhausen & Claudia Kemfert, 2006. "A Strategic Model of European Gas Supply (GASMOD)," Discussion Papers of DIW Berlin 551, DIW Berlin, German Institute for Economic Research.
    8. Marina Tsygankova, 2007. "When is Mighty Gazprom Good for Russia?," Discussion Papers 526, Research Department of Statistics Norway.
    9. Neuhoff, K. & von Hirschhausen, C., 2005. "Long-term vs. Short-term Contracts; A European perspective on natural gas," Cambridge Working Papers in Economics 0539, Faculty of Economics, University of Cambridge.
    10. Tsygankova, Marina, 2010. "When is a break-up of Gazprom good for Russia?," Energy Economics, Elsevier, vol. 32(4), pages 908-917, July.
    11. Payne, James E. & Loomis, David G. & Wilson, Renardo, 2011. "Residential Natural Gas Demand in Illinois: Evidence from the ARDL Bounds Testing Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(2).
    12. Sergey Chernavsky & Oleg Eismont, 2009. "Is Gas Cartel's Profitable for Russia? (A Case of European Gas Market)," Journal of the New Economic Association, New Economic Association, issue 1-2, pages 127-149.

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