Short run and long run dynamics of residential electricity consumption: Homogeneous and heterogeneous panel estimations for OECD

BİLGİLİ F., Pamuk Y., TÜLÜCE N. S.

Economic Computation and Economic Cybernetics Studies and Research, cilt.3, 2011 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 3
  • Basım Tarihi: 2011
  • Dergi Adı: Economic Computation and Economic Cybernetics Studies and Research
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus
  • Anahtar Kelimeler: Elasticities, Electricity consumption, Homogeneous and heterogeneous variance structures, Panel dynamic ordinary least squares, Panel error correction model
  • İstanbul Gelişim Üniversitesi Adresli: Hayır

Özet

The purpose of this paper is to reveal the short run and long run dynamics of residential electricity consumption for 11 OECD countries within annual period 1979-2006. To this end, this paper first explores the findings from related literature evidence and, later, follows panel cointegration equations (CEs) and panel error correction models (ECMs). CEs give long run relations of the variables in residential electricity demand function. ECMs include both long run and short run parameter estimates of the per capita residential electricity demand in terms of residential electricity price, residential light fuel oil price, residential natural gas price and per capita income. For both ECs and ECMs, the techniques of panel OLS, panel adjusted OLS and panel dynamic OLS are utilized. Finally, this paper yields short term and long term elasticities of residential electricity consumption together with error correction terms through homogeneous and heterogeneous variance structures.