Natural Gas Demand in the European Household Sector
Frank Asche (),
Odd Bjarte Nilsen and
Ragnar Tveterås ()
The Energy Journal, 2008, vol. Volume 29, issue Number 3, 27-46
This paper analyzes the residential natural gas demand in 12 European countries using a dynamic demand model, which allows for country-specific short- and long-run elasticity estimates. The own-price and income elasticities tend to be very inelastic in the short run, albeit with much greater responsiveness in the longer run. Our results support very limited technological substitution possibilities between different energy carriers in the short run. Furthermore, the results suggested structural differences of residential natural gas demand across European countries and provide support for employing a heterogeneous estimator such as the shrinkage estimator.
JEL-codes: F0 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:aen:journl:2008v29-03-a02
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