The price and income elasticity of China's natural gas demand: A multi-sectoral perspective
Qiang Ji () and
Energy Policy, 2018, vol. 113, issue C, 332-341
Natural gas as a clean, low-carbon energy will play an important role in the world's low-carbon energy transformation. In this paper, research on the elasticity of natural gas demand is surveyed, and it is found that the price and income elasticities of natural gas demand in different sectors are distinctive. In particular, this paper constructs an autoregressive distribution lag model to study the elasticity of natural gas demand in various sectors of China. The results show that, except for the residents sector, the long-run price elasticity of natural gas demand in other sectors is greater than 0, which is contrary to the estimates of developed countries. The demand for natural gas is complementary to coal in industrial and power generation sectors, which is also different from developed countries. The elasticity of natural gas demand in residents sector is lack in price elasticity but abundant in income elasticity, which is similar to the developed countries. The results also shows that natural gas and oil are substitutes for each other in the transportation sector, and natural gas and coal are substitutes for each other in service sector.
Keywords: Natural gas; Price elasticity; Income elasticity; Energy demand (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:113:y:2018:i:c:p:332-341
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 ().