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Cointegration and the demand for gasoline

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  • Bhaskara Rao, B.
  • Rao, Gyaneshwar

Abstract

Since the early 1970s, there has been a worldwide upsurge in the price of energy and in particular of gasoline. Therefore, demand functions for energy and its components like gasoline have received much attention. However, since confidence in the estimated demand functions is important for use in policy and forecasting, following [Amarawickrama, H.A., Hunt, L.C., 2008. Electricity demand for Sri Lanka: A time series analysis. Energy Economics 33, 724-739], this paper estimates the demand for gasoline is estimated with five alternative time series techniques with data from Fiji. Estimates with these alternative techniques are very close, and thus increase our confidence in them. We found that gasoline demand is both price and income inelastic.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 37 (2009)
Issue (Month): 10 (October)
Pages: 3978-3983

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Handle: RePEc:eee:enepol:v:37:y:2009:i:10:p:3978-3983

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Keywords: Gasoline demand Income and price elasticities Cointegration;

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References

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  1. Himanshu A. Amarawickrama & Lester C. Hunt, 2007. "Electricity Demand for Sri Lanka: A Time Series Analysis," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS), Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey 118, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
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Citations

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Cited by:
  1. Scott, K. Rebecca, 2011. "Demand and price volatility: rational habits in international gasoline demand," CUDARE Working Paper Series, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy 1122, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  2. Rao, B. Bhaskara & Vadlamannati, Krishna Chaitanya, 2009. "Estimates of the level and growth effects of human capital in India," MPRA Paper 17480, University Library of Munich, Germany.
  3. Kumar, Saten, 2008. "Cointegration and the Demand for Energy in Fiji," MPRA Paper 18704, University Library of Munich, Germany.
  4. Lin, Boqiang & Xie, Chunping, 2013. "Estimation on oil demand and oil saving potential of China's road transport sector," Energy Policy, Elsevier, Elsevier, vol. 61(C), pages 472-482.
  5. Kyoung-Min Lim & Myunghwan Kim & Chang Seob Kim & Seung-Hoon Yoo, 2012. "Short-Run and Long-Run Elasticities of Diesel Demand in Korea," Energies, MDPI, Open Access Journal, vol. 5(12), pages 5055-5064, November.
  6. Türkekul, Berna & UnakItan, Gökhan, 2011. "A co-integration analysis of the price and income elasticities of energy demand in Turkish agriculture," Energy Policy, Elsevier, Elsevier, vol. 39(5), pages 2416-2423, May.
  7. Scott, K. Rebecca, 2013. "Demand and Price Uncertainty: Rational Habits in International Gasoline Demand," CUDARE Working Paper Series, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy 1131, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  8. Carlos Esteban Posada, . "Dinero, Interés, Inflación y Fluctuaciones económicas en Colombia desde 1958," Borradores de Economia 044, Banco de la Republica de Colombia.
  9. Katarzyna Leszkiewicz-Kędzior, 2011. "Modelling Fuel Prices. An I(1) Analysis," Central European Journal of Economic Modelling and Econometrics, CEJEME, CEJEME, vol. 3(2), pages 75-95, June.
  10. Orlando Reyes. & Roberto Escalante. & Anna Matas., 2010. "La demanda de gasolinas en México: Efectos y alternativas ante el cambio climático," Economía: teoría y práctica, Economía: teoría y práctica, vol. 32(1), pages 83-111, Enero-Jun.
  11. Baranzini, Andrea & Weber, Sylvain, 2013. "Elasticities of gasoline demand in Switzerland," Energy Policy, Elsevier, Elsevier, vol. 63(C), pages 674-680.

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