The price and income elasticities of natural gas demand: International evidence

Paul Burke () and Hewen Yang

Energy Economics, 2016, vol. 59, issue C, 466-474

Abstract: Natural gas contributes a growing share of the world's energy mix. In this paper we use national-level data for a sample of 44 countries to estimate the price and income elasticities of natural gas demand. We present both single-equation results and results instrumenting natural gas prices with proved natural gas reserves. Our instrument includes both domestic reserves and distance-weighted reserves in other countries. We obtain estimates of the average long-run price elasticity of natural gas demand of around −1.25 and of the average long-run income elasticity of natural gas demand of +1 and higher. We also present separate estimates for final natural gas demand by industry and households.

Keywords: Natural gas; Price; Income; Elasticity; Demand (search for similar items in EconPapers)
JEL-codes: Q31 Q41 Q43 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (54)

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Working Paper: The price and income elasticities of natural gas demand: International evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:59:y:2016:i:c:p:466-474

DOI: 10.1016/j.eneco.2016.08.025

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