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 The dynamic OLS (DOLS) framework is used to estimate logarithmic demand equations with previously unpublished national-level quarterly data.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|
References listed on IDEAS
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.:
- Newey, Whitney & West, Kenneth, 2014.
"A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix,"
Publishing House "SINERGIA PRESS", vol. 33(1), pages 125-132.
- Newey, Whitney K & West, Kenneth D, 1987. "A Simple, Positive Semi-definite, Heteroskedasticity and Autocorrelation Consistent Covariance Matrix," Econometrica, Econometric Society, vol. 55(3), pages 703-08, May.
- 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.
- 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.
- Bartels, R. & Fiebig, D.G., 1990. "Integrating Direct Metering And Conditional Demand Analysis Fr Estimating End-Use Loads," Papers 9056, Tilburg - Center for Economic Research.
- Dumagan, Jesus C. & Mount, Timothy D., 1992.
"Welfare Effects Of Improving End-Use Efficiency: Theory And Application To Residential Electricity Demand,"
128113, Cornell University, Department of Applied Economics and Management.
- 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.
- 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.
- Rushdi, Ali Ahmed, 1986. "Interfuel substitution in the residential sector of South Australia," Energy Economics, Elsevier, vol. 8(3), pages 177-185, July.
- McKibbin, W.J. & Wilcoxen, P.J., 1995.
"The Theoretical and Empirical Structure of the G-Cubed Model,"
118, Brookings Institution - Working Papers.
- McKibbin, Warwick J. & Wilcoxen, Peter J., 1998. "The theoretical and empirical structure of the G-Cubed model," Economic Modelling, 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.
- Donnelly, W. A. & Diesendorf, M., 1985. "Variable elasticity models for electricity demand," Energy Economics, Elsevier, vol. 7(3), pages 159-162, July.
- 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.
- 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.
- Bauwens, Luc & Fiebig, Denzil G & Steel, Mark F J, 1994.
"Estimating End-Use Demand: A Bayesian Approach,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 12(2), pages 221-31, April.
- 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).
- 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.
- 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).
- Goldschmidt, Peter, 1988. "Domestic appliance energy usage in Western Australia," Energy Economics, Elsevier, vol. 10(2), pages 155-162, April.
- 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.
- 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, 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 & Saddler, H D W, 1984. "The Retail Demand for Electricity in Tasmania," Australian Economic Papers, Wiley Blackwell, vol. 23(42), pages 52-60, June.
- 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.
- 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.
- 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.
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 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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.