Short- and long-run elasticities in energy demand: A cointegration approach

Abstract Short- and long-run energy demand elasticities are estimated on Danish annual data for 1948–1990. Energy consumption, the real price of energy and real GDP appear to be non-stationary variables. Cointegration and error-correction methods are therefore applied. All estimated parameters have the expected signs and magnitudes and no evidence is found of a structural break in energy demand caused by the increases in real energy prices since 1973/74.

[1]  The-Hiep Nguyen.  On energy coefficients and ratios , 1984 .

[2]  S. Johansen.  STATISTICAL ANALYSIS OF COINTEGRATION VECTORS , 1988 .

[3]  Chris Chatfield,et al.  Introduction to Statistical Time Series. , 1976 .

[4]  Do income elasticities of energy demand depend on the level of economic growth? A sensitivity test for OECD countries , 1990 .

[5]  C. Granger,et al.  Co-integration and error correction: representation, estimation and testing , 1987 .

[6]  A. E. Bopp.  Tests for structural change in US oil consumption, 1967-1982 , 1984 .

[7]  C. Nelson,et al.  Trends and random walks in macroeconmic time series: Some evidence and implications , 1982 .

[8]  George Kouris,et al.  Elasticities - science or fiction? , 1981 .

[9]  W. Fuller,et al.  Distribution of the Estimators for Autoregressive Time Series with a Unit Root , 1979 .

[10]  G. Kouris.  Energy consumption and economic activity in industrialized economies—a note , 1983 .

[11]  P. Perron,et al.  Trends and random walks in macroeconomic time series : Further evidence from a new approach , 1988 .

[12]  M. Beenstock,et al.  Energy consumption and economic activity in industrialized countries: The dynamic aggregate time series relationship , 1981 .

[13]  R. D. Prosser,et al.  Demand elasticities in OECD: Dynamical aspects , 1985 .

[14]  James H. Stock,et al.  Asymptotic Properties of Least Squares Estimators of Cointegrating Vectors , 1987 .

[15]  The reliability of aggregate energy demand functions: An application of statistical specification error tests , 1989 .

[16]  P. Ramain.  The energy demand elasticity in relation to gross domestic product: A relevant indicator? , 1986 .

[17]  S. Johansen.  Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models , 1991 .