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Estimating energy price elasticities for the non-oil manufacturing industries in Kuwait

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  • Mohamed Nagy Eltony
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    Abstract

    This study dealt with the estimation of price elasticities for the non-oil manufacturing industrial energy demand for the case of Kuwait using the two-stage inter-fuel substitution approach. The estimated model has performed quite well and thus was simulated assuming a 100 per cent price shock in order to gain the short- and long-run own- and cross-price elasticities. The results suggest that a great deal of adjustment to higher prices comes from total energy demand and not from inter-fuel substitution. Copyright 2008 The Author. Journal compilation 2008 Organization of the Petroleum Exporting Countries.

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    Bibliographic Info

    Article provided by Organization of the Petroleum Exporting Countries in its journal OPEC Energy Review.

    Volume (Year): 32 (2008)
    Issue (Month): 2 (06)
    Pages: 184-195

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    Handle: RePEc:bla:opecrv:v:32:y:2008:i:2:p:184-195

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    Web page: http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN%291753-0237

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    Cited by:
    1. Stern, David I., 2009. "Interfuel Substitution: A Meta-Analysis," Research Reports 94882, Australian National University, Environmental Economics Research Hub.

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