IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v35y2010i7p2745-2751.html
   My bibliography  Save this article

Improved technical efficiency and exogenous factors in transportation demand for energy: An application of structural time series analysis to South Korean data

Author

Listed:
  • Sa'ad, Suleiman

Abstract

This paper stresses the importance of incorporating the effects of improved technical efficiency and exogenous factors when estimating energy demand functions. Using annual time series data for the period 1973–2007 in the STSM (structural time series model) developed by Harvey et al. [26] the paper estimates price and income elasticities of demand for energy as well as the annual growth of the stochastic trend at the end of the estimation period. The results of the study reveal a long-run income elasticity of 1.37 and a price elasticity of −0.19. In addition, the underlying trend is generally stochastic and negatively sloping during the greater part of the estimation period. Finally, the estimated result from the structural time series is compared with the results from the Johansen Cointegration. These results suggest that income is the dominant factor in energy consumption. In addition, the coefficient of linear trend is negative, supporting the results from the STSM.

Suggested Citation

  • Sa'ad, Suleiman, 2010. "Improved technical efficiency and exogenous factors in transportation demand for energy: An application of structural time series analysis to South Korean data," Energy, Elsevier, vol. 35(7), pages 2745-2751.
    • Handle: RePEc:eee:energy:v:35:y:2010:i:7:p:2745-2751
    DOI: 10.1016/j.energy.2010.01.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544210000496
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2010.01.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jones, Clifton T, 1994. "Accounting for technical progress in aggregate energy demand," Energy Economics, Elsevier, vol. 16(4), pages 245-252, October.
    2. Lester C. Hunt & Guy Judge & Yasushi Ninomiya, 2003. "Modelling underlying energy demand trends," Chapters, in: Lester C. Hunt (ed.), Energy in a Competitive Market, chapter 9, Edward Elgar Publishing.
    3. Kenneth B. Medlock & Ronald Soligo, 2002. "Car Ownership and Economic Development with Forecasts to the Year 2015," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 163-188, May.
    4. Beenstock, Michael & Wilcocks, Patrick, 1983. "Energy and economic activity: a reply to Kouris," Energy Economics, Elsevier, vol. 5(3), pages 212-212, July.
    5. Plotkin, Steven E & Greene, David, 1997. "Prospects for improving the fuel economy of light-duty vehicles," Energy Policy, Elsevier, vol. 25(14-15), pages 1179-1188, December.
    6. Storchmann, Karl, 2005. "Long-Run Gasoline demand for passenger cars: the role of income distribution," Energy Economics, Elsevier, vol. 27(1), pages 25-58, January.
    7. Kouris, George, 1983. "Energy consumption and economic activity in industrialized economies--a note," Energy Economics, Elsevier, vol. 5(3), pages 207-212, July.
    8. Joyce Dargay & Dermot Gately & Martin Sommer, 2007. "Vehicle Ownership and Income Growth, Worldwide: 1960-2030," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 143-170.
    9. Ishiguro, M. & Akiyama, T., 1995. "Energy Demand in Five Major Asian Developing Countries," World Bank - Discussion Papers 277, World Bank.
    10. Sara Banaszak & Ujjayant Chakravorty & PingSun Leung, 1999. "Demand for Ground Transportation Fuel and Pricing Policy in Asian Tigers: A Comparative Study of Korea and Taiwan," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 145-165.
    11. Wohlgemuth, Norbert, 1997. "World transport energy demand modelling : Methodology and elasticities," Energy Policy, Elsevier, vol. 25(14-15), pages 1109-1119, December.
    12. Lester C. Hunt (ed.), 2003. "Energy in a Competitive Market," Books, Edward Elgar Publishing, number 2519.
    13. Harvey, A C, et al, 1986. "Stochastic Trends in Dynamic Regression Models: An Application to the Employment-Output Equations," Economic Journal, Royal Economic Society, vol. 96(384), pages 975-985, December.
    14. Orasch, Wolfgang & Wirl, Franz, 1997. "Technological efficiency and the demand for energy (road transport)," Energy Policy, Elsevier, vol. 25(14-15), pages 1129-1136, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kang, Jijun & Yu, Chenyang & Xue, Rui & Yang, Dong & Shan, Yuli, 2022. "Can regional integration narrow city-level energy efficiency gap in China?," Energy Policy, Elsevier, vol. 163(C).
    2. Pukšec, Tomislav & Krajačić, Goran & Lulić, Zoran & Mathiesen, Brian Vad & Duić, Neven, 2013. "Forecasting long-term energy demand of Croatian transport sector," Energy, Elsevier, vol. 57(C), pages 169-176.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dilaver, Zafer & Hunt, Lester C., 2011. "Industrial electricity demand for Turkey: A structural time series analysis," Energy Economics, Elsevier, vol. 33(3), pages 426-436, May.
    2. Sa'ad, Suleiman, 2011. "Underlying energy demand trends in South Korean and Indonesian aggregate whole economy and residential sectors," Energy Policy, Elsevier, vol. 39(1), pages 40-46, January.
    3. Olaniyan, Monisola J. & Evans, Joanne, 2014. "The importance of engaging residential energy customers' hearts and minds," Energy Policy, Elsevier, vol. 69(C), pages 273-284.
    4. Adeyemi, Olutomi I. & Hunt, Lester C., 2014. "Accounting for asymmetric price responses and underlying energy demand trends in OECD industrial energy demand," Energy Economics, Elsevier, vol. 45(C), pages 435-444.
    5. Huntington, Hillard G. & Barrios, James J. & Arora, Vipin, 2019. "Review of key international demand elasticities for major industrializing economies," Energy Policy, Elsevier, vol. 133(C).
    6. Hunt, Lester C. & Judge, Guy & Ninomiya, Yasushi, 2003. "Underlying trends and seasonality in UK energy demand: a sectoral analysis," Energy Economics, Elsevier, vol. 25(1), pages 93-118, January.
    7. SHIRANI-FAKHR, Zohreh & KHOSHAKHLAGH, Rahman & SHARIFI, Alimorad, 2015. "Estimating Demand Function For Electricity In Industrial Sector Of Iran Using Structural Time Series Model (Stsm)," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 143-160.
    8. Adeyemi, Olutomi I. & Broadstock, David C. & Chitnis, Mona & Hunt, Lester C. & Judge, Guy, 2010. "Asymmetric price responses and the underlying energy demand trend: Are they substitutes or complements? Evidence from modelling OECD aggregate energy demand," Energy Economics, Elsevier, vol. 32(5), pages 1157-1164, September.
    9. Lester C. Hunt & Guy Judge & Yasushi Ninomiya, 2003. "Modelling underlying energy demand trends," Chapters, in: Lester C. Hunt (ed.), Energy in a Competitive Market, chapter 9, Edward Elgar Publishing.
    10. Dilaver, Zafer & Hunt, Lester C., 2021. "Modelling U.S. gasoline demand: A structural time series analysis with asymmetric price responses," Energy Policy, Elsevier, vol. 156(C).
    11. Dilaver, Zafer & Hunt, Lester C, 2011. "Modelling and forecasting Turkish residential electricity demand," Energy Policy, Elsevier, vol. 39(6), pages 3117-3127, June.
    12. Adofo, Yaw Osei & Evans, Joanne & Hunt, Lester Charles, 2013. "How sensitive to time period sampling is the asymmetric price response specification in energy demand modelling?," Energy Economics, Elsevier, vol. 40(C), pages 90-109.
    13. Ringlund, Guro Bornes & Rosendahl, Knut Einar & Skjerpen, Terje, 2008. "Does oilrig activity react to oil price changes An empirical investigation," Energy Economics, Elsevier, vol. 30(2), pages 371-396, March.
    14. Adeyemi, Olutomi I. & Hunt, Lester C., 2007. "Modelling OECD industrial energy demand: Asymmetric price responses and energy-saving technical change," Energy Economics, Elsevier, vol. 29(4), pages 693-709, July.
    15. John Dimitropoulos & Lester Hunt & Guy Judge, 2005. "Estimating underlying energy demand trends using UK annual data," Applied Economics Letters, Taylor & Francis Journals, vol. 12(4), pages 239-244.
    16. Hunt, Lester C. & Ryan, David L., 2015. "Economic modelling of energy services: Rectifying misspecified energy demand functions," Energy Economics, Elsevier, vol. 50(C), pages 273-285.
    17. M. Yu. Ksenofontov & S. R. Milyakin, 2018. "The Automobilization Process and Its Determining Factors in the Past, Present, and Future," Studies on Russian Economic Development, Springer, vol. 29(4), pages 406-414, July.
    18. Strand, Jon, 2013. "Political economy aspects of fuel subsidies : a conceptual framework," Policy Research Working Paper Series 6392, The World Bank.
    19. Lester C. Hunt & Guy Judge & Yashushi Ninomiya, 2000. "Modelling Technical Progress: An Application of the Stochastic Trend Model to UK Energy Demand," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 99, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
    20. Tajudeen, Ibrahim A., 2015. "Examining the role of energy efficiency and non-economic factors in energy demand and CO2 emissions in Nigeria: Policy implications," Energy Policy, Elsevier, vol. 86(C), pages 338-350.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:35:y:2010:i:7:p:2745-2751. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.