The price and income elasticities of natural gas demand: International evidence

Paul Burke () and Hewen Yang

Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics

Abstract: Natural gas contributes a growing share of the world's energy mix. In this paper we use national-level data for a sample of 44 countries to estimate the price and income elasticities of natural gas demand. We present both single-equation results and results instrumenting natural gas prices with proved natural gas reserves. Our instrument includes both domestic reserves and distance-weighted reserves in other countries. We obtain estimates of the average long-run price elasticity of natural gas demand of around -1.25 and of the average long-run income elasticity of natural gas demand of +1 and higher. We also present separate estimates for final natural gas demand by industry and households.

Keywords: natural gas; price; income; elasticity; demand (search for similar items in EconPapers)
JEL-codes: Q31 Q41 Q43 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2016
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (60)

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Journal Article: The price and income elasticities of natural gas demand: International evidence (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2016-14

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