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Consumption of Electricity and Oil in Jordan: A non-parametric analysis using B-splines

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  • Shahateet, Mohammed
  • Bdour, Jaber

Abstract

This research is needed to provide scientific evidence that the consumption of electricity in Jordan substituted consumption of petroleum products. The study addresses changes of growth in both consumptions to analyze the impact of changes in electricity consumption on changes in the demand for oil in Jordan, both as annual growth percentages during 1971-2007. The method of B-spline is utilised to analyse and examine the shift from petroleum products to electricity. B-spline curves are also employed to determine the extent of this shift and when it did happen. To do that, the study employs a non-linear optimization model for the determination of spline order and function estimates. After that, it calculates the speed and acceleration of growth of both electricity and petroleum products. The study concludes that electricity has substituted petroleum products during several periods but major substitutions occurred during 1971-1976 and 2004-2007.

Suggested Citation

  • Shahateet, Mohammed & Bdour, Jaber, 2010. "Consumption of Electricity and Oil in Jordan: A non-parametric analysis using B-splines," MPRA Paper 57352, University Library of Munich, Germany, revised 2010.
    • Handle: RePEc:pra:mprapa:57352
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    More about this item

    Keywords

    Non-Parametric Analysis; Econometric Models; Economics of Energy;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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