Glauco De Vita (Oxford Brookes University Business School) Klaus Endresen (Independent Energy Consultant, Namibia) Lester C. Hunt () (Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey)
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Using a unique database of end-user local energy data and the recently developed Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration, we estimate the long-run elasticities of the Namibian energy demand function at both aggregated level and by type of energy (electricity, petrol and diesel) for the period 1980 to 2002. Our main results show that energy consumption responds positively to changes in GDP and negatively to changes in energy price and air temperature. The differences in price elasticities across fuels uncovered by this study have significant implications for energy taxation by Namibian policy makers. We do not find any significant cross-price elasticities between different fuel types.
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Length: 42 pages Date of creation: Jul 2005 Date of revision: Publication status: Published in Energy Policy, 34(18), December 2006, pp. 3447-3463 (Revised Version). Handle: RePEc:sur:seedps:110
Find related papers by JEL classification: Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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