Residential Natural Gas Demand in Illinois: Evidence from the ARDL Bounds Testing Approach

James Payne, David G. Loomis and Renardo Wilson

Journal of Regional Analysis and Policy, 2011, vol. 41, issue 2, 10

Abstract: This study estimates the demand for residential natural gas in the state of Illinois using an autoregressive distributed lag (ARDL) bounds testing approach based on annual data from 1970 to 2007. The ARDL bounds testing approach reveals a long-run equilibrium relationship between natural gas consumption per capita and real residential natural gas prices, real personal disposable income per capita, real residential electricity prices, real fuel oil prices, and heating degree days. Long-run elasticity estimates show that only real residential natural gas prices, real residential electricity prices, and heating degree days are statistically significant. The results from the corresponding error correction model indicate that only real residential natural gas prices and heating degree days are statistically significant. While the long-run elasticity estimates are larger than the short-run elasticity estimates, both the short-run and long-run elasticity estimates are less than one in absolute terms. Furthermore, the speed of adjustment towards long-run equilibrium is approximately 1.42 years.

Keywords: Research; Methods/Statistical; Methods (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://ageconsearch.umn.edu/record/133345/files/11-2-5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:133345

DOI: 10.22004/ag.econ.133345

Access Statistics for this article

More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().