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U.S. Department of Energy
Office of Scientific and Technical Information

Analyzing demand behavior: a study of energy elasticities

Book ·
OSTI ID:5814857

This book takes econometric studies as data, it examines their assumptions, investigates their methodologies, contrasts the data sets they use, and compares their results. Pitfalls, sources of error in interpretation, and advantages and disadvantages of alternative procedures are laid out for demand estimators. The analysis demonstrates that estimates can be substantially different, depending on the choices the researcher makes among alternative statistical models, types of data, and estimation methods. After an introductory chapter, Chapter 2 presents the analytical basis for comparing and evaluating the econometric studies of energy demand. Starting from the economic concepts of demand common to these studies, the discussion focuses on the major methodological issues that arise in translating the theory into testable hypotheses about demand behavior. Chapters 3 through 6 discuss studies pertaining to electricity, natural gas, petroleum, and coal, according to consuming sector (residential, commercial, industrial, transportation, and electricity generation) and by modeling technique and type of data analyzed. This organization is intended to group the statistical results by common procedure and data in order to highlight their similarities and differences. The last chapter draws a number of conclusions about the empirical results and estimation methods reviewed. The conclusions about measures of price elasticity focus on the question of reliability and which measures may be regarded as most defensible.

OSTI ID:
5814857
Country of Publication:
United States
Language:
English