Abstract

In this paper we attempt to identify some of the factors that have determined the level and pattern of energy demand in developing countries during the 1970s and early 1980s. Aggregate oil and energy demanding functions are constructed for a selection of oil-importing countries and oil-exporting countries. The results show a strong link between income and aggregate energy demand. Conversely, the price elasticity of energy demand is low both in the short run and the long run. Oil demand behaviour is more complex. Oil products can be rationed, or domestic energy production can affect oil demand. Nonetheless, the income elasticity remains close to one in most countries, and is well above one for some.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call