Industrial demand for energy in Thailand: interfuel and factor substitution

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:6518757

Thongpakde, N

The main objective of this study is to understand the structure of industrial demand for energy in Thailand, with emphasis on the substitution effect among energy products and between aggregate energy and the other inputs of production. This knowledge is vital for energy-pricing policies and demand management. The study focuses on five sectors: agriculture, manufacturing, transportation, electricity and water supply, and services and others. Demand for inputs is constructed from the translog cost function, with an assumption of homothetic separability between energy products and the other inputs of production. The cost-share equations are estimated for the period 1970-1984 for each sector by iterative Zellner's technique. Results indicate that the demand for energy products is price-responsive and that pricing policy should be effective for energy-demand management. Elasticities vary across sectors. Interfuel substitution exists and is the dominant feature. Diesel-gasoline, fuel oil-electricity and gasoline-LPG are strongly substitutable. The full static equilibrium (FSE) and the partial static equilibrium (PSE) models are specified for the aggregate input model. The FSE model shows that inputs are price responsive. The substitution effect is strong for capital-energy and capital-labor.

• Research Organization: Boston Univ., MA (USA)
• OSTI ID: 6518757
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
292000* -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320301 -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes-- Energy Sources
ASIA
CAPITAL
DEMAND
DEVELOPING COUNTRIES
ECONOMETRICS
ECONOMIC ELASTICITY
ECONOMICS
ENERGY DEMAND
FUEL SUBSTITUTION
INDUSTRY
LABOR
MANAGEMENT
MATHEMATICAL MODELS
PRICES
THAILAND