Fuel Demand Elasticities for Energy and Environmental Policies Indian Sample Survey Evidence
AbstractIndia has been running large-scale interventions in the energy sector over the last decades. Still, there is a dearth of reliable and readily available price and income elasticities of demand to base these on, especially for domestic use of traditional fuels. This study uses the linear approximate almost ideal demand system (LA-AIDS) using micro data of more than 100,000 households sampled across India. The LA-AIDS model is expanded by specifying the intercept as a linear function of household characteristics. Marshallian and Hicksian price and expenditure elasticities of demand for four main fuels are estimated for both urban and rural areas by different income groups. These can be used to evaluate recent and current energy policies. The results can also be used for energy projections and carbon dioxide simulations given different growth rates for different segments of the Indian population.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by East Asian Bureau of Economic Research in its series Energy Working Papers with number 22501.
Date of creation: Jan 2006
Date of revision:
Contact details of provider:
Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
Web page: http://www.eaber.org
More information through EDIRC
LA-AIDS; fuel; India; income; price; elasticities; NSSO data;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
- Rasmus Heltberg & Thomas Channing Arndt & Nagothu Udaya Sekhar, 2000. "Fuelwood Consumption and Forest Degradation: A Household Model for Domestic Energy Substitution in Rural India," Land Economics, University of Wisconsin Press, vol. 76(2), pages 213-232.
- Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(03), pages 337-361, June.
- Pitt, Mark M., 1985. "Equity, externalities and energy subsidies The case of kerosine in Indonesia," Journal of Development Economics, Elsevier, vol. 17(3), pages 201-217, April.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Bluffstone Randall A., 1995. "The Effect of Labor Market Performance on Deforestation in Developing Countries under Open Access: An Example from Rural Nepal," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 42-63, July.
- Awudu Abdulai & Devendra K. Jain & Ashok K. Sharma, 1999. "Household Food Demand Analysis in India," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(2), pages 316-327.
- X.M. Gao & Eric J. Wailes & Gail L. Cramer, 1996. "A Two-Stage Rural Household Demand Analysis: Microdata Evidence from Jiangsu Province, China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 604-613.
- Gunnar K�hlin & Gregory S. Amacher, 2005. "Welfare Implications of Community Forest Plantations in Developing Countries: The Orissa Social Forestry Project," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 855-869.
- Heltberg, Rasmus, 2004. "Fuel switching: evidence from eight developing countries," Energy Economics, Elsevier, vol. 26(5), pages 869-887, September.
- Ray, Ranjan, 1980. "Analysis of a Time Series of Household Expenditure Surveys for India," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 595-602, November.
- Patrick J. Byrne & Oral Capps & Atanu Saha, 1996. "Analysis of Food-Away-from-Home Expenditure Patterns for U.S. Households, 1982–89," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 614-627.
- Bowonder, B. & Prasad, S. S. R. & Unni, N. V. M., 1988. "Dynamics of fuelwood prices in India: Policy implications," World Development, Elsevier, vol. 16(10), pages 1213-1229, October.
- Dunkerley, J. & Macauley, M. & Naimuddin, M. & Agarwal, P. C., 1990. "Consumption of fuelwood and other household cooking fuels in Indian cities," Energy Policy, Elsevier, vol. 18(1), pages 92-99.
- Deaton, A., 1988.
"Price Elasticities From Survey Data: Extensions And Indonesian Results,"
138, Princeton, Woodrow Wilson School - Development Studies.
- Deaton, Angus, 1990. "Price elasticities from survey data : Extensions and Indonesian results," Journal of Econometrics, Elsevier, vol. 44(3), pages 281-309, June.
- Deaton, A., 1990. "Price Elasticities From Surveys Data: Extensions And Indonesian Results," Papers 69, World Bank - Living Standards Measurement.
- Alain Carpentier & Hervé Guyomard, 2001. "Unconditional Elasticities in Two-Stage Demand Systems: An Approximate Solution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 222-229.
- Maurizio Bussolo & David O’Connor, 2001. "Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits," OECD Development Centre Working Papers 182, OECD Publishing.
- Gunnar Köhlin & Peter J. Parks, 2001. "Spatial Variability and Disincentives to Harvest: Deforestation and Fuelwood Collection in South Asia," Land Economics, University of Wisconsin Press, vol. 77(2), pages 206-218.
- Alam, Manzoor & Sathaye, Jayant & Barnes, Doug, 1998. "Urban household energy use in India: efficiency and policy implications," Energy Policy, Elsevier, vol. 26(11), pages 885-891, September.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Ngui, Dianah & Mutua, John & Osiolo, Hellen & Aligula, Eric, 2011. "Household energy demand in Kenya: An application of the linear approximate almost ideal demand system (LA-AIDS)," Energy Policy, Elsevier, vol. 39(11), pages 7084-7094.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong).
If references are entirely missing, you can add them using this form.