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Natural Gas Demand in the European Household Sector

Author

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  • Frank Asche
  • Odd Bjarte Nilsen
  • Ragnar Tveteras

Abstract

This paper analyzes the residential natural gas demand in 12 European countries using a dynamic demand model, which allows for country-specific short- and long-run elasticity estimates. The own-price and income elasticities tend to be very inelastic in the short run, albeit with much greater responsiveness in the longer run. Our results support very limited technological substitution possibilities between different energy carriers in the short run. Furthermore, the results suggested structural differences of residential natural gas demand across European countries and provide support for employing a heterogeneous estimator such as the shrinkage estimator.

Suggested Citation

  • Frank Asche & Odd Bjarte Nilsen & Ragnar Tveteras, 2008. "Natural Gas Demand in the European Household Sector," The Energy Journal, , vol. 29(3), pages 27-46, July.
    • Handle: RePEc:sae:enejou:v:29:y:2008:i:3:p:27-46
    DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No3-2
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    References listed on IDEAS

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    1. Robert S. Pindyck, 1979. "The Structure of World Energy Demand," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661772, April.
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