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Factors Affecting Energy Demand in Developing Countries: A Dynamic Panel Analysis

Author

Listed:
  • Azlina Abd. Aziz

    (Department of Economics, Universiti Malaysia Terengganu, Malaysia)

  • Nik Hashim Nik Mustapha

    (Department of Economics, Universiti Malaysia Terengganu, Malaysia)

  • Roslina Ismail

    (Department of Social Ecology, Faculty of Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia)

Abstract

This work presents an empirical study of energy demand, in which demand for energy is expressed as a function of various factors, such as income, price, economic structure, and CO2 emission. Parameter values are estimated econometrically, using a panel data approach of 16 developing countries over 30-years period. In general, the empirical results of this study confirm the majority of the findings in energy demand analysis where income and price have shown to be important determinants in energy demand. Moreover, economic structure and also CO2 emission appear to exert significant impact on energy demand. Short- and long-run elasticities of demand are estimated and some policy suggestions are given to improve energy saving and green energy consumption in developing countries.

Suggested Citation

  • Azlina Abd. Aziz & Nik Hashim Nik Mustapha & Roslina Ismail, 2013. "Factors Affecting Energy Demand in Developing Countries: A Dynamic Panel Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 3(Special), pages 1-6.
    • Handle: RePEc:eco:journ2:2013-04-1
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    References listed on IDEAS

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    Cited by:

    1. Kejia Yan & Rakesh Gupta & Victor Wong, 2022. "CO 2 Emissions in G20 Nations through the Three-Sector Model," JRFM, MDPI, vol. 15(9), pages 1-25, September.
    2. Kathia Pinz'on, 2016. "Analysis of Price and Income Elasticities of Energy Demand in Ecuador: A Dynamic OLS Approach," Papers 1611.05288, arXiv.org.
    3. Keho, Yaya, 2016. "What drives energy consumption in developing countries? The experience of selected African countries," Energy Policy, Elsevier, vol. 91(C), pages 233-246.
    4. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019. "Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania," Energy Policy, Elsevier, vol. 130(C), pages 243-252.
    5. Jaweriya Naz & Dr. Mirza Faizan Ahmed & Prof. Dr. Raza Ali Khan, 2024. "Pakistan Energy Outlook for Next 25 Years," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 563-572.
    6. Pinzón, Kathia, 2018. "Dynamics between energy consumption and economic growth in Ecuador: A granger causality analysis," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 88-101.
    7. Samuel A Sarkodie & Evans B Ntiamoah & Dongmei Li, 2019. "Panel heterogeneous distribution analysis of trade and modernized agriculture on CO2 emissions: The role of renewable and fossil fuel energy consumption," Natural Resources Forum, Blackwell Publishing, vol. 43(3), pages 135-153, August.
    8. Roslina Ismail & Jumadil Saputra & Azlina Abdul Aziz, 2019. "Improving Environmental Performance of the Muslim World: Evidence from Affluent Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 301-312.
    9. Dilawar Khan & Muhammad Nouman & Arif Ullah, 2023. "Assessing the impact of technological innovation on technically derived energy efficiency: a multivariate co-integration analysis of the agricultural sector in South Asia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(4), pages 3723-3745, April.
    10. Sallahuddin Hassan, 2018. "Long Run Energy Demand and Its Determinants: A Panel Cointegration Analysis of the Association of Southeast Asian Nations-5," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 270-279.

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    More about this item

    Keywords

    Energy demand; panel data;

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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