Construction of a fuel demand function portraying interfuel substitution, a system dynamics approach

Ibrahim Abada, Vincent Briat and Olivier Massol
Additional contact information
Ibrahim Abada: IFPEN - IFP Energies nouvelles, EDF R&D - EDF R&D - EDF - EDF, EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique
Vincent Briat: EDF R&D - EDF R&D - EDF - EDF

Working Papers from HAL

Abstract: Most of the recent numerical market partial equilibrium models of natural gas markets use imperfect competition assumptions. These models are typically embedded with a simple representation of the demand side, usually a single-variable, linear, inverse demand function, that does not capture any dynamic adjustment to past prices or energy substitution. To remedy this, we report an effort to construct an enhanced functional specification using the system dynamics-based model of [27], [28]. This putty-clay model uses a vintage representation of capital stock to capture the effect of both past and current energy prices on fuel consumption. Using a re-calibrated version of this model, we first confirm the pertinence of this modeling framework to represent interfuel substitution at different fuel prices in the industrial sector. Building on these findings, a dynamic functional specification of the demand function for natural gas is then proposed and calibrated.

Date: 2011-04
Note: View the original document on HAL open archive server: https://ifp.hal.science/hal-02472342
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://ifp.hal.science/hal-02472342/document (application/pdf)

Related works:
Journal Article: Construction of a fuel demand function portraying interfuel substitution, a system dynamics approach (2013)
Working Paper: Construction of a fuel demand function portraying interfuel substitution, a system dynamics approach (2011)
Working Paper: Construction of a fuel demand function portraying interfuel substitution, a system dynamics approach (2011)
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: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02472342

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().