Residential energy demand in Australia: an application of dynamic OLS
This paper reports estimates of the long-run elasticities of residential demand for electricity, natural gas and other fuels for Australia. The dynamic OLS (DOLS) framework is used to estimate logarithmic demand equations with previously unpublished national-level quarterly data. Significant substitution possibilities are found between electricity and gas and between electricity and other fuels. However, the cross-price elasticity of gas with respect to the price of residual fuels is negative. Our results are similar to other Australian and North American estimates but are more theoretically consistent than previous Australian estimates. We confirm that Australian residential energy demand is much more price responsive than North American residential energy demand.
|Date of creation:||Oct 2001|
|Date of revision:|
|Contact details of provider:|| Web page: http://incres.anu.edu.au/EEP/wp.html|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bartels, Robert & Fiebig, Denzil G & Nahm, Daehoon, 1996. "Regional End-Use Gas Demand in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 319-31, December.
- Donnelly, W. A. & Diesendorf, M., 1985. "Variable elasticity models for electricity demand," Energy Economics, Elsevier, vol. 7(3), pages 159-162, July.
- Bauwens, L. & Fiebig, D. G. & Steel, M. F. J., .
"Estimating End-use Demand: a Bayesian Approach,"
CORE Discussion Papers RP
1090, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- BAUWENS, Luc & FIEBIG, Denzil & STEEL, Mark, 1992. "Estimating End-Use Demand : A Bayesian Approach," CORE Discussion Papers 1992052, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Steel, Mark F.J. & Fiebig, Denzil G. & Bauwens, Luc, 1992. "Estimating end-use demand: A Bayesian approach," UC3M Working papers. Economics 2839, Universidad Carlos III de Madrid. Departamento de Economía.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
- Fiebig, Denzil G. & Bartels, Robert & Aigner, Dennis J., 1991. "A random coefficient approach to the estimation of residential end-use load profiles," Journal of Econometrics, Elsevier, vol. 50(3), pages 297-327, December.
- W. A. Donnelly, 1984. "Residential Electricity Demand Modeling in the Australian Capital Territory: Preliminary Results," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 119-132.
- Bartels, R. & Fiebig, D.G., 1990.
"Integrating Direct Metering And Conditional Demand Analysis Fr Estimating End-Use Loads,"
9056, Tilburg - Center for Economic Research.
- Robert Bartels & G. Fiebig, 1990. "Integrating Direct Metering and Conditional Demand Analysis for Estimating End-Use Loads," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 79-98.
- Bartels, R. & Fiebig, D., 1990. "Integrating Direct Metering and Conditional Demand Analysis for Estimating End-Use Loads," Discussion Paper 1990-56, Tilburg University, Center for Economic Research.
- Robert Bartels & Denzil G. Fiebig, 2000. "Residential End-Use Electricity Demand: Results from a Designed Experiment," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 51-81.
- 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 317-23, April.
- McKibbin, Warwick J. & Wilcoxen, Peter J., 1998.
"The theoretical and empirical structure of the G-Cubed model,"
Elsevier, vol. 16(1), pages 123-148, January.
- W. J. McKibbin & P. J. Wilcoxen, . "The Theoretical and Empirical Structure of the G-Cubed Model," Discussion Papers 118, Brookings Institution International Economics.
- McKibbin, W.J. & Wilcoxen, P.J., 1995. "The Theoretical and Empirical Structure of the G-Cubed Model," Papers 118, Brookings Institution - Working Papers.
- Newey, Whitney K & West, Kenneth D, 1987.
"A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix,"
Econometric Society, vol. 55(3), pages 703-08, May.
- Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
- Whitney K. Newey & Kenneth D. West, 1986. "A Simple, Positive Semi-Definite, Heteroskedasticity and AutocorrelationConsistent Covariance Matrix," NBER Technical Working Papers 0055, National Bureau of Economic Research, Inc.
- Rushdi, Ali Ahmed, 1986. "Interfuel substitution in the residential sector of South Australia," Energy Economics, Elsevier, vol. 8(3), pages 177-185, July.
- Hawkins, R G, 1975. "The Demand for Electricity: A Cross-section Study of New South Wales and the Australian Capital Territory," The Economic Record, The Economic Society of Australia, vol. 51(133), pages 1-18, March.
- Donnelly, W A & Saddler, H D W, 1984. "The Retail Demand for Electricity in Tasmania," Australian Economic Papers, Wiley Blackwell, vol. 23(42), pages 52-60, June.
- Perron, Pierre, 1989.
"The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,"
Econometric Society, vol. 57(6), pages 1361-1401, November.
- Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
- Goldschmidt, Peter, 1988. "Domestic appliance energy usage in Western Australia," Energy Economics, Elsevier, vol. 10(2), pages 155-162, April.
- Dumagan, Jesus C. & Mount, Timothy D., 1993.
"Welfare effects of improving end-use efficiency: Theory and application to residential electricity demand,"
Resource and Energy Economics,
Elsevier, vol. 15(2), pages 175-201, June.
- Dumagan, Jesus C. & Mount, Timothy D., 1992. "Welfare Effects Of Improving End-Use Efficiency: Theory And Application To Residential Electricity Demand," Working Papers 128113, Cornell University, Department of Applied Economics and Management.
- Stock, James H & Watson, Mark W, 1993.
"A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems,"
Econometric Society, vol. 61(4), pages 783-820, July.
- James H. Stock & Mark W. Watson, 1991. "A simple estimator of cointegrating vectors in higher order integrated systems," Working Paper Series, Macroeconomic Issues 91-3, Federal Reserve Bank of Chicago.
- Tom Doan, . "SWDOLS: RATS procedure to estimate cointegrating vectors using dynamic OLS," Statistical Software Components RTS00207, Boston College Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:anu:wpieep:0104. 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: (Jack Pezzey)
If references are entirely missing, you can add them using this form.