 On the demand for natural gas in urban ChinaYihua Yu (), Xinye Zheng () and Yi Han Energy Policy, 2014, vol. 70, issue C, 57-63 Abstract: Using a set of unbalanced panel data for Chinese׳s cities during the period of 2006–2009, this study aims to estimate the price and income elasticities of residential demand for natural gas. Natural gas consumption is specified as a function of its own price; substitute prices; urban wages; and other supply, climate, and housing characteristics. Using a feasible generalised least squares (FGLS) technique, which controls for panel heteroskedasticity and panel correlation, we find that natural gas consumption is price elastic and income inelastic when other covariates (e.g., the supply of natural gas pipeline and heating degree days) are controlled. In addition, there are large variations in demand behaviours across China׳s regions. There is a substantial income effect on demand for natural gas in southern China, whereas the northern regions are found to have a higher price effect. In addition, the substitution effect between coal and natural gas is significant in North China but is not significant in South China. These findings have several important policy implications for natural gas pricing and supply cost analysis in the context of China. Keywords: Natural gas demand; Price and income elasticities; Feasible generalised least squares; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:70:y:2014:i:c:p:57-63 DOI: 10.1016/j.enpol.2014.03.032 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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