Indexed by:Journal paper
Document Code:105486
First Author:Banban Wang
Correspondence Author:Xiujie Tan
Co-author:Jie Wei,Bin Su
Journal:Energy Economics
Included Journals:SSCI
Key Words:Price elasticity of energy demand Sectoral heterogeneity Time-varying Semiparametric estimation China
Date of Publication:2021-07-30
Impact Factor:7.042
Abstract:The price elasticities of energy demand are intrinsically sectorally heterogeneous and time-varying, which is crucial for policy assessment, yet little studied. Therefore, in this study, we apply a semiparametric model that allows the coeffcients to vary with continuous and categorical attributes to explore the sector-specifc and yearspecifc price elasticities. We take China as an example, covering 32 industrial sectors from 1999 to 2015. Two main results have been found: (a) yearly average elasticities increased during the sample period and experienced faster growth since the 11th Five-Year-Plan period; and (b) the price elasticities showed signifcant sectoral heterogeneity in their magnitude, range, and trend. Nonmetal products (e.g., cement), metals, and chemicals have the largest elasticities. The mining and equipment manufacturing sectors are close to the sample average value. The light industry sector has the largest heterogeneity. The weighted mean of our results is consistent with those in the existing literature but provides more sector-specifc information.
Links to published journals:https://www.sciencedirect.com/science/article/pii/S0140988321003728