Underlying trends and seasonality in UK energy demand: a sectoral analysis
AbstractThis paper demonstrates the importance for energy demand modelling of allowing for trends and seasonal effects that are stochastic in form. Inherent underlying trends may be non-linear and reflect not only technical progress, which usually produces greater energy efficiency, but also other factors such as changes in consumer tastes and the economic structure that may be working in the opposite direction. Using quarterly unadjusted data for various sectors in the UK, it is shown that unless energy demand models are formulated so as to allow for stochastic trends and seasonals, estimates of price and income elasticities could be seriously biased.
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Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 25 (2003)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/eneco
Other versions of this item:
- Hunt, L.C. & Judge, G. & Ninomiya, Y., 2000. "Underlying Trends and Seasonality in UK Energy Demands: A Sectorial Analysis," Papers 134, Portsmouth University - Department of Economics.
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
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