• Journal of Energy Engineering
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• v.25 no.2
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• pp.37-44
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• 2016

The demand for electricity has a considerable impact on various energy sectors since electricity is generated from various energy sources. This paper attempts to estimate the electricity demand function and obtain some quantitative information on price and income elasticities of the demand. To this end, we apply a lagged dependent variable model to derive long-run as well as short-run elasticities using the time-series data over the period 1991-2014. Our dependent variable is annual electricity demand. The independent variables include constant term, real price of electricity, and real gross domestic product. The results show that the short-run price and income elasticities of the electricity demand are estimated to be -0.142 and 0.866, respectively. They are statistically significant at the 5% level. That is, the electricity demand is in-elastic with respect to price and income changes in the short-run. The long-run price and income elasticities of the electricity demand are calculated to be -0.210 and 1.287, respectively, which are also statistically meaningful at the 5% level. The electricity demand is still in-elastic with regard to price change in the long-run. However, the electricity demand is elastic regarding income change in the long-run. Therefore, this indicates that the effect of demand-side management policy through price-control is restrictive in both the short- and long-run. The growth in electricity demand following income growth is expected to be more remarkable in the long-run than in the short-run.

• Environmental and Resource Economics Review
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• v.11 no.1
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• pp.81-97
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• 2002

Unlike the existing supply-centered water policy, demand management policy of water has become an increasingly important issue in Korea. This paper attempts to analyse the demand for domestic water in Seoul. We employed Engle-Granger's error correction model(ECM) to deduced the price and income elasticities of the water demand. Particularly, we used accounted water amounts instead of supplied water amounts as representative variable of water demand. The result indicates that ECM set up is appropriate and short-run and long-run price elasticities derived by the model are -0.145 and -1.414. In contrast with other studies, we can conclude that the water demand for the water price is elastic. Besides, we can infer from this result that the water price policy with respect to a decrease of leakage ratio is more effective.

• Asia-Pacific Journal of Business
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• v.10 no.2
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• pp.13-26
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• 2019

This paper aims to empirically examine the short-run and long-run aggregate demand for the US imports using quarterly economic data for the period 2000-2018 including aggregate imports, final expenditure components, gross fixed capital formation and relative price of imports. According to the results of both multivariate co-integration analysis and error correction model, the above variables are all cointegrated and significant differences are found to exist among the long-run partial elasticities of imports as regards different macro components of final expenditure. Partial elasticities with respect to government expenditure, gross fixed capital formation, exports and relative price of import are found to be positive while imports seems to respond negatively to changes in private consumption, implying that an increase in private consumption could result in a significant reduction in demand for imports in the long run. With regard to the relative import prices, the results appear to indicate a relatively insignificant influence on the aggregate imports in the US in the long run. However, an error correction model designed for predicting the short-term variability shows that only exports have an impact on the imports in the short run.

• Journal of Energy Engineering
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• v.26 no.2
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• pp.80-92
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• 2017

This paper attempts to estimate the diesel fuel demand function in Korea using panel data panel data of 16 major cities or provinces which consist of diesel demands, diesel market prices and gross value added from the year 1998 to 2015. I apply panel GLS(generalized least square) model, fixed effect model, random effect model and dynamic panel model to estimating the parameters of the diesel fuel demand function. The results show that short-run price elasticities of the diesel fuel demand are estimated to be -0.2146(panel GLS), -0.2886(fixed effect), -0.2854(random effect), -0.1905(dynamic panel) respectively. And short-run income elasticities of the diesel fuel demand are estimated to be 0.7379(panel GLS), 0.4119(fixed effect), 0.7260(random effect), 0.4166(dynamic panel) respectively. The short-run price and income elasticities explain that demand for diesel fuel is price- and income-inelastic. The long-run price and income elasticities are estimated to be -0.4784, 1.0461 by dynamic panel model, which means that demand for diesel fuel is price-inelastic but income-elastic in the long run. In addition I apply dummy variable model to estimate the effect of 16 major cities or provinces on diesel demands. The results show that diesel demands is affected 10 regions on the basis of Seoul.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.573-581
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• 2021

The current study analyzed the impacts of fiscal decentralization (FD) on the economic stability of Pakistan. This study used time series data from 1981 to 2017. The collected data was first passed through the unit root analysis. ARDL estimation techniques were employed to scrutinize the data where long-run associations were tested through Wald F-statistics. The long-run estimates were extracted by applying Ordinary Least Square, and error correction mechanisms were employed to find the speed of adjustment for disequilibria between the long and the short run. Wald F-statistics confirmed the existence of long-run cointegration. Long-run elasticities suggested that fiscal decentralization because of limited institutional capabilities of provincial governments failed in bringing stability in the economy of Pakistan. Similarly, transparency issues and misspecification of projects hinder the outcome of investment to stabilize the economy. High service payments on debt cut the amount that can be used for skills improvements and destabilize the economy. High Population growth puts pressure on infrastructure and reduces production capacity, ultimately destabilizing the economy by increasing unemployment and inflation. Based on these findings, the government is suggested to improve the institutional capacity of lower governments for the desired outcome of power devolution.

• Health Policy and Management
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• v.9 no.3
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• pp.53-69
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• 1999

In this study. we present a modified rational addiction model which incorporates social-psychological factors. This is done through a utility function which includes social-psychological factors as its component. We apply this model to a cigarette consumption function in Korea using the data from the Korean Household Panel Study(KHPS). The results provide relatively strong support for the rational addiction model. However. the impact of social-psychological factors and the short-run and long-run price elasticities are statistically insignificant.

• Journal of Korean Society of Transportation
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• v.26 no.1
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• pp.51-63
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• 2008

Jeju-Mainland demand for air passenger is variated by the season because most of the demands stem from the leisure travel. This research is to estimate the econometrics demand models(A simple time series model and the partial adjustment model) and elasticities of each models for the Jeju-Mainland domestic routes air travel market using the time series aggregate data between the year 1996 and 2005. As the result of estimating, income elasticity was evaluated to be elastic(1.55) and fare elasticity was inelastic(-0.49${\sim}$-0.59) for A simple time series models. In the partial adjustment model's case, income elasticity was evaluated to be inelastic(0.51) in short-run whereas it was evaluated to be elastic(1.88) in long-run. Fare elasticity was evaluated to be inelastic in short-run(high-demand season: -0.13, slack season: -0.20) and long-run(high-demand season: -0.48, slack season: -0.72).

• Journal of Energy Engineering
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• v.21 no.3
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• pp.301-308
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• 2012

This paper attempts to estimate the demand function for the transport LPG and to analyze long-run and short-run price and income elasticities. In addition, the paper measures consumer surplus and economic value ensuing from the transport LPG consumption by utilizing the estimated long-run price elasticity. The price and the income data are the monthly real transport LPG price and the monthly composite index adjusted by real transport LPG price from 2003 to 2012. Unit root test, co-integration test and error correction model are to take the procedure of estimation of demand curve. The demand for transport LPG is considered to be inelastic and the long-run demand is more elasticity than that of short-run. Price elasticity of demand estimate here is -0.422, and the estimated consumer surplus and economic value in 2010/03 are 966 and 1,781 billion won, respectively.

• Journal of Energy Engineering
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• v.22 no.4
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• pp.370-375
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• 2013

This paper attempts to estimate the city gas demand function in Korea over the period 1981-2012. As the city gas demand function provides us information on the pattern of consumer's city gas consumption, it can be usefully utilized in predicting the impact of policy variables such as city gas price and forecasting the demand for city gas. We apply lagged dependent variable model and ordinary least square method as a robust approach to estimating the parameters of the city gas demand function. The results show that short-run price and income elasticities of the city gas demand are estimated to be -0.522 and 0.874, respectively. They are statistically significant at the 1% level. The short-run price and income elasticities portray that demand for city gas is price- and income-inelastic. This implies that the city gas is indispensable goods to human-being's life, thus the city gas demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for city gas is price- and income-elastic in the long-run.

• Journal of Energy Engineering
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• v.22 no.3
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• pp.245-249
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• 2013

This paper attempts to estimate the kerosene demand function in Korea over the period 1981-2012. As the kerosene demand function provides us information on the pattern of consumer's kerosene consumption, it can be usefully utilized in predicting the impact of policy variables such as kerosene price and forecasting the demand for kerosene. We apply least absolute deviations and least median squares estimation methods as a robust approach to estimating the parameters of the kerosene demand function. The results show that short-run price and income elasticities of the kerosene demand are estimated to be -0.468 and 0.409, respectively. They are statisitically significant at the 1% level. The short-run price and income elasticities portray that demand for kerosene is price- and income-inelastic. This implies that the kerosene is indispensable goods to human-being's life, thus the kerosene demand would not be promptly adjusted to responding to price and/or income change. However, long-run price and income elasticities reveal that the demand for kerosene is price- and income-elastic in the long-run.