IDEAS home Printed from https://ideas.repec.org/a/rre/publsh/v33y2003i2p206-28.html
   My bibliography  Save this article

A Dynamic Estimation of Total Energy Demand for the Southern States

Author

Listed:
  • Olatubi, Williams O.

    (Center for Energy Studies, LA State U)

  • Zhang, Yan

    (Center for Energy Studies, LA State U)

Abstract

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.

Suggested Citation

  • Olatubi, Williams O. & Zhang, Yan, 2003. "A Dynamic Estimation of Total Energy Demand for the Southern States," The Review of Regional Studies, Southern Regional Science Association, vol. 33(2), pages 206-228.
  • Handle: RePEc:rre:publsh:v:33:y:2003:i:2:p:206-28
    as

    Download full text from publisher

    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/67/18
    Download Restriction: no

    References listed on IDEAS

    as
    1. Moody, Carlisle E., 1996. "A regional linear logit fuel demand model for electric utilities," Energy Economics, Elsevier, vol. 18(4), pages 295-314, October.
    2. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, pages 85-101.
    3. Berck, Peter & Roberts, Michael, 1996. "Natural Resource Prices: Will They Ever Turn Up?," Journal of Environmental Economics and Management, Elsevier, vol. 31(1), pages 65-78, July.
    4. Kouris, George, 1983. "Fuel consumption for road transport in the USA," Energy Economics, Elsevier, vol. 5(2), pages 89-99, April.
    5. Richard Schmalensee & Thomas M. Stoker & Ruth A. Judson, 1998. "World Carbon Dioxide Emissions: 1950-2050," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 15-27, February.
    6. Liu, Ben-chieh, 1983. "Natural gas price elasticities : Variations by region and by sector in the USA," Energy Economics, Elsevier, vol. 5(3), pages 195-201, July.
    7. Baltagi, Badi H. & Griffin, James M., 1983. "Gasoline demand in the OECD : An application of pooling and testing procedures," European Economic Review, Elsevier, vol. 22(2), pages 117-137, July.
    8. Prosser, Richard D., 1985. "Demand elasticities in OECD : Dynamical aspects," Energy Economics, Elsevier, vol. 7(1), pages 9-12, January.
    9. Arsenault, E. & Bernard, J. -T. & Carr, C. W. & Genest-Laplante, E., 1995. "A total energy demand model of Quebec : Forecasting properties," Energy Economics, Elsevier, vol. 17(2), pages 163-171, April.
    10. David L. Ryan & Yu Wang & Andre Plourde, 1996. "Asymmetric Price Responses of Residential Energy Demand in Ontario," Canadian Journal of Economics, Canadian Economics Association, vol. 29(s1), pages 317-323, April.
    11. Arellano, Manuel, 1989. "A note on the Anderson-Hsiao estimator for panel data," Economics Letters, Elsevier, vol. 31(4), pages 337-341, December.
    12. Brookes, L G, 1972. "More on the Output Elasticity of Energy Consumption," Journal of Industrial Economics, Wiley Blackwell, vol. 21(1), pages 83-92, November.
    13. Ruth, Matthias, 1998. "Dematerialization in five US metals sectors: implications for energy use and CO2 emissions," Resources Policy, Elsevier, vol. 24(1), pages 1-18, March.
    14. 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.
    15. Molly Espey, 1996. "Explaining the Variation in Elasticity Estimates of Gasoline Demand in the United States: A Meta-Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 49-60.
    16. Rossana Galli, 1998. "The Relationship Between Energy Intensity and Income Levels: Forecasting Long Term Energy Demand in Asian Emerging Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 85-105.
    17. Sun, J. W., 2003. "Dematerialization in Finnish energy use, 1972-1996," Energy Economics, Elsevier, vol. 25(1), pages 23-32, January.
    18. Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 29-57.
    19. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    20. Garcia-Cerrutti, L. Miguel, 2000. "Estimating elasticities of residential energy demand from panel county data using dynamic random variables models with heteroskedastic and correlated error terms," Resource and Energy Economics, Elsevier, vol. 22(4), pages 355-366, October.
    21. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Esseghir, Asma & Haouaoui Khouni, Leila, 2014. "Economic growth, energy consumption and sustainable development: The case of the Union for the Mediterranean countries," Energy, Elsevier, vol. 71(C), pages 218-225.
    2. Fei, Li & Dong, Suocheng & Xue, Li & Liang, Quanxi & Yang, Wangzhou, 2011. "Energy consumption-economic growth relationship and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 39(2), pages 568-574, February.
    3. Lee, Chien-Chiang & Chiu, Yi-Bin, 2011. "Electricity demand elasticities and temperature: Evidence from panel smooth transition regression with instrumental variable approach," Energy Economics, Elsevier, vol. 33(5), pages 896-902, September.
    4. Pedregal, D.J. & Dejuán, O. & Gómez, N. & Tobarra, M.A., 2009. "Modelling demand for crude oil products in Spain," Energy Policy, Elsevier, vol. 37(11), pages 4417-4427, November.
    5. Lee, Chien-Chiang & Chang, Chun-Ping, 2008. "Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data," Resource and Energy Economics, Elsevier, vol. 30(1), pages 50-65, January.

    More about this item

    Keywords

    Energy;

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rre:publsh:v:33:y:2003:i:2:p:206-28. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher Yencha). General contact details of provider: http://www.srsa.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.