Economics at your fingertips  

Policy implications of considering pre-commitments in U.S. aggregate energy demand system

Christopher S. Rowland, James W. Mjelde and Senarath Dharmasena

Energy Policy, 2017, vol. 102, issue C, 406-413

Abstract: Linear approximations of the Generalized Almost Ideal Demand System and Almost Ideal Demand System for U.S. energy are compared to contrast the explicit inclusion and exclusion of pre-committed consumption levels. Results indicate that pre-commitment levels, the quantity of a good that is consumed in the short run with little regard for price, helps to better explain energy demand in the U.S. compared to the system that does not explicitly consider pre-commitments. Policy implications are if pre-commitments are a legitimate assumption, larger price changes are necessary to achieve a given policy objective than if there are no pre-commitments.

Keywords: Pre-commitments; Energy demand; Generalized Almost Ideal Demand System model; Almost Ideal Demand System model (search for similar items in EconPapers)
JEL-codes: Q41 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-04-28
Handle: RePEc:eee:enepol:v:102:y:2017:i:c:p:406-413