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The Demand for Natural Gas: A Survey of Price and Income Elasticities

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  • Mohammed A. Al-Sahlawi

Abstract

My purpose has been to survey and review price and income elasticities of the demand for natural gas. The surveyed studies are classified by demand type, where the functional forms, estimation techniques, data types, estimated periods and concerned countries or regions are indicated. Studies have demonstrated that there is variation in price and income elasticity estimates. These discrepancies are due to differing estimated periods, various data sources, structural changes, geographical differentials, and the distinction between different demand types. In the short run, it appears that industrial demand and residentialcommercial demand are inelastic with respect to price and income. Industrial demand is more responsive to income than residentialcomercial demand in the short run as well as in the long run. This might be caused by the differences between natural gas end uses.

Suggested Citation

  • Mohammed A. Al-Sahlawi, 1989. "The Demand for Natural Gas: A Survey of Price and Income Elasticities," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 77-90.
    • Handle: RePEc:aen:journl:1989v10-01-a07
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    JEL classification:

    • F0 - International Economics - - General

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