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2019 | OriginalPaper | Chapter

3. Energy Demand Analysis

Author : Subhes C. Bhattacharyya

Published in: Energy Economics

Publisher: Springer London

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Abstract

This chapter introduces the concept of energy demand using basic micro-economics and presents the three-stage decision-making process of energy demand. It then provides a set of simple indicators (such as price and income elasticities and energy intensity) and discusses the decomposition method and econometric method that can be used to analyse energy demand.

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Appendix
Available only for authorised users
Footnotes
1
This section relies on Bohi (1981), Chap. 2, Estimating the demand for energy: Issues and Methodologies. Similar treatments are also provided in Hartman (1979), Munasinghe and Meier (1993).
 
2
See also Chap. 2 of Bohi (1981), Munasinghe and Meier (1993), and Medlock (2009).
 
3
See Wilson and Dowlatabadi (2007).
 
4
This discussion is based on Chap. 3, Energy Demand and Economic Growth, Measurement and Conceptual Issues in Policy Analysis, by C. M. Siddayao, West View Press (1986).
 
5
Also see ODYSSEE project for energy efficiency indicators in Europe (http://​www.​odyssee-indicators.​org/​).
 
6
This can also be expressed as the ratio of share of energy of a sector i and the total energy used in the economy (i.e. Ei/E). This can be seen from the following relationship: \( \frac{{EI_{i} S_{i} }}{{\sum\limits_{i} {EI_{i} S_{i} } }} = \frac{{\frac{{E_{i} }}{{Q_{i} }}\frac{{Q_{i} }}{Q}}}{{\frac{E}{Q}}} = \frac{{E_{i} }}{E} \).
 
8
Substitute fuel price is not relevant here as the appliance has a specific fuel use capacity. This ignores the dual-fuel capability of the appliance.
 
9
See any econometrics textbook, e.g. Pindyck and Rubinfeld (1998) for further discussions on this subject.
 
10
See any econometrics textbook, e.g. Pindyck and Rubinfeld (1998) for further discussions on this subject.
 
11
Again, this book does not enter into this.
 
12
The data for the pilot project can be found here: http://​www.​ucd.​ie/​issda/​data/​commissionforene​rgyregulationcer​/​ (last accessed on 11th April, 2018).
 
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Metadata
Title
Energy Demand Analysis
Author
Subhes C. Bhattacharyya
Copyright Year
2019
Publisher
Springer London
DOI
https://doi.org/10.1007/978-1-4471-7468-4_3

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