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2015 | OriginalPaper | Chapter

8. Energy Demand Model I

Author : Nabaz T. Khayyat

Published in: Energy Demand in Industry

Publisher: Springer Netherlands

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Abstract

This chapter introduces the second group of the econometric models estimation, namely the energy demand model. The model is constructed in two forms: The Cobb-Douglas and the Translog function to allow for consistency and comparability. It is worthy of mentioning that the estimated energy demand is a derived demand, the variable of energy is considered as one of the input factors of production. The energy demand is, therefore, derived from the demand for the industry’s output. Since the demand for energy depends on the output level, the possible substitutability between energy and other inputs is allowed by production technology and energy price.

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Due to unavailability of the inputs prices in the data set, the cross price elasticizes are not computed.

For more detail description of the inverted factor demand, see Kumbhakar et al. (2000).

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Title: Energy Demand Model I
Author: Nabaz T. Khayyat
Publisher: Springer Netherlands
Book: Energy Demand in Industry
Print ISBN: 978-94-017-9952-2

Electronic ISBN: 978-94-017-9953-9

Copyright Year: 2015
DOI: https://doi.org/10.1007/978-94-017-9953-9_8