Accounting for asymmetric price responses and underlying energy demand trends in OECD industrial energy demand
Olutomi Adeyemi () and
Lester Hunt ()
Energy Economics, 2014, vol. 45, issue C, 435-444
This paper explores the way technical progress and improvements in energy efficiency are captured when modelling OECD industrial energy demand. The industrial sectors of the developed world involve a number of different practices and processes utilising a range of different technologies. Consequently, given the derived demand nature of energy, it is vital when modelling industrial energy demand that the impact of technical progress is appropriately captured. However, the energy economics literature does not give a clear guide on how this can be achieved; one strand suggests that technical progress is ‘endogenous’ via asymmetric price responses whereas another strand suggests that it is ‘exogenous’. More recently, it has been suggested that potentially there is a role for both ‘endogenous’ technical progress and ‘exogenous’ technical progress and consequently the general model should be specified accordingly.
Keywords: OECD industrial energy demand; Asymmetric price responses (APR); Underlying energy demand trend (UEDT) (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 L60 Q41 (search for similar items in EconPapers)
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Working Paper: Accounting for asymmetric price responses and underlying energy demand trends in OECD industrial energy demand (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:45:y:2014:i:c:p:435-444
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