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A Micro-Econometric Analysis of the Industrial Demand for Energy in NSW

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  • Alan D. Woodland

Abstract

This paper analyzes an extensive data set consisting of observations on all manufacturing establishments in New South Wales, Australia over an eight-year period. The focus is on the determinants of the demands by manufacturing establishments for different fuels (namely coal, oil, gas and electricity) and, in particular, upon the responsiveness of the demands to changes in the prices of the various fuels, the wage rate, and the rental rate on capital. Particular attention is paid to the facts that (a) establishments have different patterns of fuel consumption and (b) gas and electricity have block-pricing structures. Estimates of own-price elasticities of demand for electricity, gas and oil are higher than appear in the literature.

Suggested Citation

  • Alan D. Woodland, 1993. "A Micro-Econometric Analysis of the Industrial Demand for Energy in NSW," The Energy Journal, , vol. 14(2), pages 57-89, April.
    • Handle: RePEc:sae:enejou:v:14:y:1993:i:2:p:57-89
    DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No2-4
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    References listed on IDEAS

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    1. repec:bla:ecorec:v:58:y:1982:i:160:p:61-72 is not listed on IDEAS
    2. Lee, Lung-Fei & Pitt, Mark M., 1987. "Microeconometric models of rationing, imperfect markets, and non-negativity constraints," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 89-110.
    3. Magnus, Jan R, 1979. "Substitution between Energy and Non-Energy Inputs in the Netherlands, 1950-1976," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(2), pages 465-484, June.
    4. Griffin, James M, 1977. "Inter-fuel Substitution Possibilities: A Translog Application to Intercountry Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(3), pages 755-770, October.
    5. Michelle Turnovsk & Michael Folie & Alistair Ulph, 1982. "Factor Substitutability in Australian Manufacturing with Emphasis on Energy Inputs," The Economic Record, The Economic Society of Australia, vol. 58(1), pages 61-72, March.
    6. Fuss, Melvyn A., 1977. "The demand for energy in Canadian manufacturing : An example of the estimation of production structures with many inputs," Journal of Econometrics, Elsevier, vol. 5(1), pages 89-116, January.
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    More about this item

    Keywords

    Industrial energy demand; Australia; NSW; econometric model; manufacturing;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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