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Estimation of Rural Demand for Natural Gas

Author

Listed:
  • S. M. Tinic

    (University of Alberta, Edmonton, Canada)

  • B. M. Harnden

    (University of Alberta, Edmonton, Canada)

  • C. T. L. Janssen

    (University of Alberta, Edmonton, Canada)

Abstract

The Government of Alberta has undertaken a study to determine the feasibility of supplying natural gas to rural areas of the Province not currently served. The study covers various aspects relevant to the development of an overall plan for rural gasification, but the emphasis is on major factors affecting the economic viability of the venture. We discuss in this paper one segment of the study--the problem of determining the demand for natural gas in rural areas. Three separate demand schedules, each based on a different methodology but using common data obtained from a survey of rural residents, are estimated. The three demand schedules are analysed and compared in an attempt to establish an overall demand curve for natural gas in rural Alberta. The price elasticity of demand for natural gas is determined from the demand function obtained.

Suggested Citation

  • S. M. Tinic & B. M. Harnden & C. T. L. Janssen, 1973. "Estimation of Rural Demand for Natural Gas," Management Science, INFORMS, vol. 20(4-Part-II), pages 604-616, December.
    • Handle: RePEc:inm:ormnsc:v:20:y:1973:i:4-part-ii:p:604-616
    DOI: 10.1287/mnsc.20.4.604
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    Cited by:

    1. Jean Gaston Tamba & Salom Ndjakomo Essiane & Emmanuel Flavian Sapnken & Francis Djanna Koffi & Jean Luc Nsouand l & Bozidar Soldo & Donatien Njomo, 2018. "Forecasting Natural Gas: A Literature Survey," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 216-249.
    2. Yoo, Seung-Hoon & Lim, Hea-Jin & Kwak, Seung-Jun, 2009. "Estimating the residential demand function for natural gas in Seoul with correction for sample selection bias," Applied Energy, Elsevier, vol. 86(4), pages 460-465, April.
    3. Soldo, Božidar, 2012. "Forecasting natural gas consumption," Applied Energy, Elsevier, vol. 92(C), pages 26-37.
    4. Wang, Ting & Lin, Boqiang, 2014. "China's natural gas consumption and subsidies—From a sector perspective," Energy Policy, Elsevier, vol. 65(C), pages 541-551.
    5. Sun, Chuanwang & Ouyang, Xiaoling, 2016. "Price and expenditure elasticities of residential energy demand during urbanization: An empirical analysis based on the household-level survey data in China," Energy Policy, Elsevier, vol. 88(C), pages 56-63.
    6. Kostakis, Ioannis & Lolos, Sarantis & Sardianou, Eleni, 2021. "Residential natural gas demand: Assessing the evidence from Greece using pseudo-panels, 2012–2019," Energy Economics, Elsevier, vol. 99(C).

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