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A Dynamic Estimation of Total Energy Demand for the Southern States

Author

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  • 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
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    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. Zheng, Wei & Walsh, Patrick Paul, 2019. "Economic growth, urbanization and energy consumption — A provincial level analysis of China," Energy Economics, Elsevier, vol. 80(C), pages 153-162.
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    6. 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.
    7. 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.

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    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

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