Kumar, Saten (2008): Cointegration and the Demand for Energy in Fiji.
Download (184kB) | Preview
This paper applies alternative time series techniques such as General to Specific (GETS) and Johansen Maximum Likelihood (JML) to estimate the long run income and price elasticities of demand for energy for Fiji. We also test for the causal relationship between energy consumption, GDP and energy prices using the Granger causality tests. Our results imply that there is a uni-directional causality running from GDP to energy consumption.
|Item Type:||MPRA Paper|
|Original Title:||Cointegration and the Demand for Energy in Fiji|
|English Title:||Cointegration and the Demand for Energy in Fiji|
|Keywords:||Energy consumption; GDP; income elasticity; energy price elasticity|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply ; Prices
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes
|Depositing User:||Saten Kumar|
|Date Deposited:||18. Nov 2009 10:34|
|Last Modified:||16. Mar 2015 16:29|
Al-Rabbaie, A. and Hunt, L.C. (2004) ‘Panel unit roots and cointegration: evidence for OECD energy demand,’ IAEE European Conference paper (Zurich), 1-24.
Al-Azzam, A. and Hawdon, D. (1999) ‘Estimating the demand for energy in Jordan: a Stock-Watson dynamic OLS (DOLS) approach,’ Surrey Energy Economics Centre, Department of Economics, University of Surrey.
Al-faris, A.F. (1992) ‘Income and price elasticity of gasoline demand in the Organization of Arab Petroleum Exporting Countries,’ Journal of Energy and Development, 17, 209-223.
Al-Iriani, M. (2006) ‘Energy-GDP relationship revisited: An example from GCC countries using panel causality,’ Energy Policy, 34, 3342-3350.
Aqeel, A. and Butt, M.S. (2001) ‘The relationship between energy consumption and economic growth in Pakistan,’ Asia-Pacific Development Journal, 8, 101-110.
Brenton, P. (1997) ‘Estimates of the demand for energy using cross-country consumption data,’ Applied Economics, 29, 851-859.
Cheng, B.S. and Lai, T.W. (1997) ‘An investigation of co-integration and causality between energy consumption and economic activity in Taiwan,’ Energy Economics, 19, 435-444.
Current Economic Statistics (various issues), Fiji Islands Bureau of Statistics, Suva.
De Vita, G., Endresen, K. and Hunt, L.C. (2006) ‘An empirical analysis of energy demand in Namibia,’ forthcoming in Energy Policy.
Diabi, A (1998) ‘The demand for electric energy in Saudi Arabia: an empirical investigation,’ OPEC Review, 24, 13-29.
Eltony, M.N. (1996a) ‘An econometric study of the demand for gasoline in the Gulf Cooperation Council Countries,’ The Journal of Energy and Development, 19, 265-273.
Eltony, M.N. and Hoque, A. (1996) ‘A cointegrating relationship in the demand for energy: The case of electricity in Kuwait,’ Journal of Energy and Development, 21, 293-301.
Fisher-Vanden, K., Jefferson, G.H., Liu, H., and Tao, Q. (2004) ‘What is driving China’s decline in energy intensity,’ Resource and Energy Economics, 26, 77-97.
Galli, R. (1998) ‘The relationship between energy intensity and income levels: forecasting long term energy demand in Asian emerging countries,’ The Energy Journal, 19, 85-105.
Holtedahl, P. and Joutz, F.L. (2004) ‘Residential electricity demand in Taiwan,’ Energy Economics, 26, 201-224.
Hunt, L.C., Judge, G. and Ninomiya, Y. (2003) ‘Modelling underlying energy demand trends,’ Chapter 9 in L.C. Hunt (Ed.) Energy in a competitive market: Essays in Honour of Colin Robinson, Edward Elgar, May, 140-174.
International Financial Statistics, December, 2005. IMF CD-ROM (Washington DC: International Monetary Fund).
Johansen, S. (1988) ‘Statistical analysis of cointegrating vectors,’ Journal of Economics Dynamics and Control, 12, 231-254.
Jumbe, C.B.L. (2004) ‘Cointegration and causality between electricity consumption and GDP: empirical evidence from Malawi,’ Energy Economics, 26, 61-68.
Key World Energy Statistics (2001 Edition), International Energy Agency, Paris.
Kumar, S. (2009) ‘A re-examination of private consumption in Fiji,’ Pacific Economic Bulletin, 24, 70-81.
Lise, W. and Montfort, K.V. (2007) ‘Energy consumption and GDP in Turkey: Is there a co-integration relationship?’ Energy Economics, 29, 1166-1178.
Masih, R. and Masih, A.M.M (1996a) ‘Stock-Watson dynamic OLS (DOLS) and error-correction modelling approaches to estimating long- and short-run elasticities in a demand function: New evidence and methodological implications from an application to the demand for coal in Mainland China,’ Energy Economics, 20, 315-334.
Masih, A.M.M and Masih, R. (1996b) ‘Energy consumption, real income and temporal Causality: results from multi country study based on cointegration and error correction modeling technique, Energy Economics, 18, 165-183.
Mohammad, Y.H. and Eltony, M.N. (1996) ‘The demand for natural gas in the Gulf Cooperation Council (GCC) states,’ Middle East Business and Economic Review, 8, 41-48.
Narayan, P.K. and Singh, B. (2007) ‘The electricity consumption and GDP nexus for the Fiji Islands, Energy Economics, 29, 1141-1150.
Overseas Trade Reports (various issues), Fiji Islands Bureau of Statistics, Suva.
Pedroni, P. (2001) ‘Purchasing power parity tests in cointegrated panel,’ The Review of Economics and Statistics, 83, 727-731.
Pesaran, M.H., Smith, R. and Akiyama, T. (1998) ‘Energy demand in Asian economies,’ Oxford: Oxford University Press.
Rao, B.B. and Rao, G. (2009a) ‘Cointegration and the demand for gasoline,’ Energy Policy, 37, 3978-3983.
Rao, B.B. and Rao, G. (2009b) ‘Structural breaks and energy efficiency in Fiji,’ Energy Policy, 37, 3959-3966.
Saed, A.A.J. (2004) ‘Estimation of total energy consumption in Jordan 1980-1999: Evidence from cointegration and stock,’ Journal of Economic and Administrative Sciences, 20, 71-82.
Singh, R. and Kumar, S. (2009) ‘Application of the alternative techniques to estimate demand for money in developing countries,’ forthcoming in the Journal of Developing Areas.
Sinton, J. and Fridley, D. (2000) ‘What goes up: recent trends in China’s energy Consumption,’ Energy Policy, 28, 671–87.
Wolde-Rufael, Y. (2004) ‘Disaggregated industrial energy consumption and GDP: the case of Shanghai, 1952–1999,’ Energy Economics, 26, 69-75.
Zamani, M. (2006) ‘Energy consumption and economic activities in Iran,’ Energy Economics, 29, 1135-1140.