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Estimates of the demand for energy using cross-country consumption data

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  • Paul Brenton

Abstract

Using cross-country consumption data we estimate a system of demand equations in a piecewise manner to investigate whether price and expenditure elasticities for energy differ between broad groups of countries. The empirical results reject the assumption of constant parameters across regimes of poor and rich countries. The derived elasticities suggest that the own-price elasticity for energy is higher in poor than in rich countries. We find no evidence for the commonly held view that expenditure elasticities for energy decline with income.

Suggested Citation

  • Paul Brenton, 1997. "Estimates of the demand for energy using cross-country consumption data," Applied Economics, Taylor & Francis Journals, vol. 29(7), pages 851-859.
    • Handle: RePEc:taf:applec:v:29:y:1997:i:7:p:851-859
    DOI: 10.1080/000368497326507
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    1. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    2. Pollak, Robert A & Wales, Terence J, 1987. "Pooling International Consumption Data," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 90-99, February.
    3. Dale S. Rothman & J. Ho Hong & Timothy D. Mount, 1994. "Estimating Consumer Energy Demand Using International Data: Theoretical and Policy Implications," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 67-88.
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