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A Dynamic Estimation of Total Energy Demand for the Southern States

  • Olatubi, Williams O.

    (Center for Energy Studies, LA State U)

  • Zhang, Yan

    (Center for Energy Studies, LA State U)

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    Few studies have examined in-depth the dynamics of energy consumption within regions or states in spite of the known differences in consumption patterns within nations. To adequately plan and forecast future energy needs and formulate conservation policies, states or regions need basic information such as income and price elasticities, consumption patterns, etc. Here we estimate the energy demand needs of the 16 states that belong to the Southern States Energy Board (SSEB) as a first step toward assessing future demand. A dynamic panel data framework is used to examine the long-run adjustment patterns. The preferred model shows a process of dematerialization over time. Per capita energy demand over time for the south is found to be relatively inelastic with respect to all the variables and more so for price (-0.32) than income (0.40). The level of income at which per capita energy consumption is maximized is $31,623 (in 1995 dollars). Six of the 16 states in the SSEB are found to have reached or surpassed this level of income.

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    Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

    Volume (Year): 33 (2003)
    Issue (Month): 2 ()
    Pages: 206-28

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    Handle: RePEc:rre:publsh:v:33:y:2003:i:2:p:206-28
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