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Demand for Oil by Developing Countries

Author

Listed:
  • Chongwoo Choe

    (School of Economics, La Trobe University)

  • Imad A Moosa

    (School of Economics, La Trobe University)

Abstract

A linear model of the demand for oil is derived from a cost minimisation problem in which demand depends on the price of oil, the price of coal and output. The model is estimated and tested against a log-linear model. The empirical results reject the log-linear specification and show that the demand for oil is highly inelastic.

Suggested Citation

  • Chongwoo Choe & Imad A Moosa, 1996. "Demand for Oil by Developing Countries," Working Papers 1996.09, School of Economics, La Trobe University.
  • Handle: RePEc:trb:wpaper:1996.09
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    Cited by:

    1. Bhattacharyya, Subhes C. & Timilsina, Govinda R., 2010. "Modelling energy demand of developing countries: Are the specific features adequately captured?," Energy Policy, Elsevier, vol. 38(4), pages 1979-1990, April.

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