Review of key international demand elasticities for major industrializing economies

Hillard Huntington, James J. Barrios and Vipin Arora ()

Energy Policy, 2019, vol. 133, issue C

Abstract: This paper conducts a selective review of various estimates for energy demand responses focused specially upon lower-income industrializing economies rather than richer mature nations. It emphasizes recent trends from empirical studies that have been published after 2000. Emphasis is placed on the five major emerging or transitional economies in Brazil, China, India, Mexico and Russia, although other important nations like Chile and South Korea are also discussed when studies are available. The review focuses attention on the long-run responses to changes in prices and income after capital stock turnover has been completed. The terminology often refers to elasticities, or the percentage change in energy use divided by the percentage change in price (or income), holding constant all other factors that could influence energy-use decisions. Estimates cover petroleum products, natural gas and electricity, although the available studies often ignore coal. They also include the economy-wide impacts (real GDP) to price changes. Most studies have focused upon household and transportation use of liquid fuels; many fewer studies have investigated fuels used by industry or commerce or for electric generation. Based upon the available estimates, price and income elasticities for liquid fuels are generally less than one (unity) for many countries and sectors, except for the long-run income effect for transportation purposes, which can range widely by country between 0.24 and 1.75 while averaging 0.94 for all countries.

Keywords: Energy demand; Developing countries; Price elasticity; Income elasticity (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (24)

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Related works:
Working Paper: Review of Key International Demand Elasticities for Major Industrializing Economies (2019)
Working Paper: Review of Key International Demand Elasticities for Major Industrializing Economies (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:133:y:2019:i:c:s0301421519304562

DOI: 10.1016/j.enpol.2019.110878

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