Time-varying Long-run Income and Output Elasticities of Electricity Demand with an Application to Korea

Chang, Yongsung; Kim, Chang Sik; Miller, J. Isaac; Park, Joon‐Young; Park, Sungkeun

doi:10.1016/j.eneco.2014.10.003

Cited by 69 publications

(71 citation statements)

References 51 publications

(64 reference statements)

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“…Meaning that if the income level increases continuously it does not necessitate a corresponding increase in the electricity consumption (see [27,31] inter alia). The proliferation era of high technology and electronic devices occurred since 2006 in the advanced economies [22]. It spilled over to Azerbaijan since 2012 due to the lagged catch-up and post financial crisis recovery.…”

Section: Discussion Of the Estimation Resultsmentioning

confidence: 99%

“…Chang et al [22] modeled Korean residential, commercial and industrial electricity consumptions using demand-side modeling framework, where income/output, price and temperature were the drivers. This is the seminal study that leads to an extensive using of TVC approach by many other works.…”

Section: Previous Studies Using Time-varying Methodsmentioning

confidence: 99%

“…Therefore, for conducting valid inferences on the parameters of the model, we use the canonical cointegrating regression (CCR) method proposed by [46], which was shown to be valid for a class of TVC models including (4) by [21]. We leave a more detailed discussion of the estimation procedure to [22].…”

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

“…A typical residential electricity demand function (This Section Adapted from [22]) is a log-linear function with fixed coefficients (FC), which relates demand of electricity and its main drivers such as electricity price, income, etc. ( [45] inter alia).…”

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

“…The cointegration relationship among the variables is tested using the variable addition test based on [47] (see [22]). …”

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

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Modeling of Electricity Demand for Azerbaijan: Time-Varying Coefficient Cointegration Approach

et al. 2017

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Abstract:Recent literature has shown that electricity demand elasticities may not be constant over time and this has investigated using time-varying estimation methods. As accurate modeling of electricity demand is very important in Azerbaijan, which is a transitional country facing significant change in its economic outlook, we analyze whether the response of electricity demand to income and price is varying over time in this economy. We employed the Time-Varying Coefficient cointegration approach, a cutting-edge time-varying estimation method. We find evidence that income elasticity demonstrates sizeable variation for the period of investigation ranging from 0.48% to 0.56%. The study has some useful policy implications related to the income and price aspects of the electricity consumption in Azerbaijan.

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Section: Discussion Of the Estimation Resultsmentioning

confidence: 99%

Section: Previous Studies Using Time-varying Methodsmentioning

confidence: 99%

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

“…The cointegration relationship among the variables is tested using the variable addition test based on [47] (see [22]). …”

Section: Time-varying Coefficient Cointegration Approachmentioning

confidence: 99%

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Modeling of Electricity Demand for Azerbaijan: Time-Varying Coefficient Cointegration Approach

et al. 2017

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Japanese beef trade impact from BSE using a time‐varying Armington model

Soon

Thompson

2019

Agribusiness

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This study examines the persistent impacts of the bovine spongiform encephalopathy (BSE) outbreak in the United States on Japanese beef demands. An Armington model with time‐varying parameters allows us to separate BSE effects from other factors. A counter‐factual case estimates that, if the BSE outbreak had not occurred, demand for Australian beef would have been lower and demand for U.S. beef would have been higher, with domestic beef demand only modestly affected. The BSE outbreak affected imported frozen beef demands more than imported chilled beef demands. Our estimation method is relevant for researchers studying the impacts of disease‐related or other trade disruptions, as well as to traders and policy makers with interest in Japanese beef markets. [EconLit citations: F14, Q17].

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