Disentangling temporal patterns in elasticities: A functional coefficient panel analysis of electricity demand

A-Tier
Journal: Energy Economics
Year: 2016
Volume: 60
Issue: C
Pages: 232-243

Authors (5)

Chang, Yoosoon (not in RePEc) Choi, Yongok (not in RePEc) Kim, Chang Sik (Sungkyunkwan University) Miller, J. Isaac (University of Missouri) Park, Joon Y. (not in RePEc)

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We introduce a panel model with a nonparametric functional coefficient of multiple arguments. The coefficient is a function both of time, allowing temporal changes in an otherwise linear model, and of the regressor itself, allowing nonlinearity. In contrast to a time series model, the effects of the two arguments can be identified using a panel model. We apply the model to the relationship between real GDP and electricity consumption. Our results suggest that the corresponding elasticities have decreased over time in developed countries, but that this decrease cannot be entirely explained by changes in GDP itself or by sectoral shifts.

Technical Details

RePEc Handle
repec:eee:eneeco:v:60:y:2016:i:c:p:232-243
Journal Field
Energy
Author Count
5
Added to Database
2026-01-25