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A meta-analysis on the price elasticity of energy demand

Author

Listed:
  • Xavier Labandeira

    (Rede (Universidade de Vigo) and European University Institute)

  • José M.aría Labeaga

    (Departamento de Análisis Económico (UNED))

  • Xiral López-Otero

    (Rede (Universidade de Vigo))

Abstract

Price elasticities of energy demand have become increasingly relevant in estimating the socio-economic and environmental effects of energy policies or of other events with influence on the prices of energy goods. Since the 1970s a large number of academic papers have provided both short and long-term price elasticity estimates for different countries by using several models, data and estimation techniques. Yet the literature offers a rather wide range of estimates for the price elasticities of demand for energy. This paper quantitatively summarizes the recent, but still sizeable, empirical evidence on this matter to facilitate a sounder economic assessment of energy price changes. It does so by using meta-analysis to identify the main factors affecting the elasticity results, both short and long term, for energy in general as well as for specific products: electricity, natural gas, gasoline, diesel and heating oil.

Suggested Citation

  • Xavier Labandeira & José M.aría Labeaga & Xiral López-Otero, 2015. "A meta-analysis on the price elasticity of energy demand," Working Papers 04-2015, Economics for Energy.
  • Handle: RePEc:efe:wpaper:04-2015
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    References listed on IDEAS

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    More about this item

    Keywords

    Keywords: short-term; long-term; electricity; gas; gasoline; diesel; oil;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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