The demand for gasoline in South Africa: An empirical analysis using co-integration techniques

Oludele A. Akinboade, Emmanuel Ziramba and Wolassa L. Kumo

Energy Economics, 2008, vol. 30, issue 6, 3222-3229

Abstract: Using the recently developed Autoregressive Distributed Lag (ARDL) bound testing approach to co-integration, suggested by Pesaran et al. (Pesaran, M.H., Shin, Y., Smith, R.J. Bounds Testing Approaches to the Analysis of Level Relationships. Journal of Applied Econometrics 2001; 16(3) 289-326), we empirically analyzed the long-run relationship among the variables in the aggregate gasoline demand function over the period 1978-2005. Our study confirms the existence of a co-integrating relationship. The estimated price and income elasticities of - 0.47 and 0.36 imply that gasoline demand in South Africa is price and income inelastic.

Keywords: Gasoline; demand; Bounds; testing; Co-integration (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (76)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:30:y:2008:i:6:p:3222-3229

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