The price and income elasticity of China's natural gas demand: A multi-sectoral perspective

B-Tier
Journal: Energy Policy
Year: 2018
Volume: 113
Issue: C
Pages: 332-341

Authors (3)

Zhang, Yi (not in RePEc) Ji, Qiang (Chinese Academy of Sciences) Fan, Ying (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Natural gas as a clean, low-carbon energy will play an important role in the world's low-carbon energy transformation. In this paper, research on the elasticity of natural gas demand is surveyed, and it is found that the price and income elasticities of natural gas demand in different sectors are distinctive. In particular, this paper constructs an autoregressive distribution lag model to study the elasticity of natural gas demand in various sectors of China. The results show that, except for the residents sector, the long-run price elasticity of natural gas demand in other sectors is greater than 0, which is contrary to the estimates of developed countries. The demand for natural gas is complementary to coal in industrial and power generation sectors, which is also different from developed countries. The elasticity of natural gas demand in residents sector is lack in price elasticity but abundant in income elasticity, which is similar to the developed countries. The results also shows that natural gas and oil are substitutes for each other in the transportation sector, and natural gas and coal are substitutes for each other in service sector.

Technical Details

RePEc Handle
repec:eee:enepol:v:113:y:2018:i:c:p:332-341
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25