Munich Personal RePEc Archive

Energy Demand, Substitution and a Potential for Electrification: An econometric analysis of eight Danish subsectors

Møller, Niels Framroze (2015): Energy Demand, Substitution and a Potential for Electrification: An econometric analysis of eight Danish subsectors.

[img]
Preview
PDF
MPRA_paper_69931.pdf

Download (389kB) | Preview

Abstract

This research contains an econometric analysis of energy demand in trade and industry which allows for substitution between electricity and other energy carriers when relative prices change. Long-run substitution towards electricity is a means of electrifying energy demand and therefore contributes to paving the way for a renewable-based energy sys-tem. For eight subsectors of the Danish economy, time series (1966-2011) are modeled by means of partial Cointegrated VARs. Long-run demand relations are identified for all subsectors and robust price elasticities are supported in five cases. The results are used in a small impulse-response experiment which suggests a potential for taxation to move energy consumption away from fossil-based fuels and towards electricity.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.