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2015 | OriginalPaper | Chapter

9. Energy Demand Model II

Author : Nabaz T. Khayyat

Published in: Energy Demand in Industry

Publisher: Springer Netherlands

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Abstract

In this chapter the third group of the econometric model is estimated, namely the energy demand model accounting for risk. The model is constructed as in the previous models in two forms: The Cobb-Douglas and the Translog function to allow for consistency and comparability. The Just and Pop production risk function is applied. To estimate the energy demand incorporating risk, different input factors of production are included.

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previous chapter Energy Demand Model I

next chapter Discussion of the Results and Policy Implications

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Since the model is non-linear in parameters an iterative procedure is used. Convergence will be obtained after repeated iteration process, which is equivalent of using the maximum likelihood estimation method.

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Title: Energy Demand Model II
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_9