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Essays on Energy Demand and Household Energy Choice
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. Umeå University, Faculty of Social Sciences, Center for Environmental and Resource Economics (CERE).
2013 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of four self-contained papers related to energydemand and household cooking energy.Paper [I] examine the impact of price, income and non-economicfactors on gasoline demand using a structural time series model. Theresults indicated that non-economic factors did have an impact ongasoline demand and also one of the largest contributors to changes ingasoline demand in both countries, especially after the 1990s. Theresults from the time varying parameter model (TVP) indicated thatboth price and income elasticities were varying over time, but thevariations were insignificant for both Sweden and the UK. Theestimated gasoline trend also showed a similar pattern for the twocountries, increasing continuously up to 1990 and taking a downturnthereafter.Paper [II] studies whether the commonly used linear parametricmodel for estimating aggregate energy demand is the correctfunctional specification for the data generating process. Parametricand nonparametric econometric approaches to analyzing aggregateenergy demand data for 17 OECD countries are used. The resultsfrom the nonparametric correct model specification test for theparametric model rejects the linear, log-linear and translogspecifications. The nonparametric results indicate that the effect of theincome variable is nonlinear, while that of the price variable is linearbut not constant. The nonparametric estimates for the price variable isrelatively low, approximately −0.2.Paper [III] relaxed the weak separability assumption betweengasoline demand and labor supply by examining the effect of laborsupply, measured by male and female working hours on gasolinedemand. I used a flexible semiparametric model that allowed fordifferences in response to income, age and labor supply, respectively.Using Swedish household survey data, the results indicated that therelationship between gasoline demand and income, age and laborsupply were non-linear. The formal separability test rejects the null ofseparability between gasoline demand and labor supply. Furthermore,there was evidence indicating small bias in the estimates when oneignored labor supply in the model.Paper [IV] investigated the key factors influencing the choice ofcooking fuels in Ghana. Results from the study indicated thateducation, income, urban location and access to infrastructure werethe key factors influencing household’s choice of the main cookingfuels (fuelwood, charcoal and liquefied petroleum gas). The study alsofound that, in addition to household demographics and urbanization,the supply (availability) of the fuels influenced household choice forthe various fuels. Increase in household income was likely to increasethe probability of choosing modern fuel (liquefied petroleum gas andelectricity) relative to solid (crop residue and fuelwood) and transitionfuel (kerosene and charcoal).

Place, publisher, year, edition, pages
Umeå,Sweden: Umeå Universitet , 2013. , 173 p.
Series
Umeå economic studies, ISSN 0348-1018 ; 864
Keyword [en]
Choice Probability, derivatives, energy policy, gasoline demand, propensity score, tax simulation, unobserved trend
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-79713ISBN: 978-91-7459-690-8 (print)OAI: oai:DiVA.org:umu-79713DiVA: diva2:644046
Public defence
2013-09-20, Samhällsvetarhuset, S205h, Umeå universitet, Umeå, 13:15 (English)
Opponent
Supervisors
Funder
Swedish Energy Agency
Available from: 2013-08-30 Created: 2013-08-29 Last updated: 2013-08-30Bibliographically approved
List of papers
1. Impact of economic and non-economic factors on gasoline demand: a varying parameter model for Sweden and the UK
Open this publication in new window or tab >>Impact of economic and non-economic factors on gasoline demand: a varying parameter model for Sweden and the UK
(English)Manuscript (preprint) (Other academic)
Abstract [en]

This paper investigated the impact of price, income and non-economic factors on gasoline demand using a structural time series model. The results indicated that non-economic factors did have an impact on gasoline demand and also one of the largest contributors to changes in gasoline demand in both countries, especially after the 1990s. The results from the time varying parameter model (TVP) indicated that both price and income elasticities were varying over time, but the variations were insignificant for both Sweden and the UK. The estimated gasoline trend also showed a similar pattern for the two countries, increasing continuously up to 1990 and taking a downturn thereafter.

Keyword
Gasoline demand, Time Varying Parameter, Tax Simulation, Unobserved Trend
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-79697 (URN)
Funder
Swedish Energy Agency
Available from: 2013-08-29 Created: 2013-08-29 Last updated: 2013-08-29Bibliographically approved
2. Functional form and aggregate energy demand elasticities: a nonparametric panel approach for 17 OECD countries
Open this publication in new window or tab >>Functional form and aggregate energy demand elasticities: a nonparametric panel approach for 17 OECD countries
2013 (English)In: Energy Economics, ISSN 0140-9883, E-ISSN 1873-6181, Vol. 36, 19-27 p.Article in journal (Refereed) Published
Abstract [en]

This paper studies whether the commonly used linear parametric model for estimating aggregate energy demand is the correct functional specification for the data generating process. Parametric and nonparametric econometric approaches to analyzing aggregate energy demand data for 17 OECD countries are used. The results from the nonparametric correct model specification test for the parametric model rejects the linear, log-linear and translog specifications. The nonparametric results indicate that the effect of the income variable is nonlinear, while that of the price variable is linear but not constant. The nonparametric estimates for the price variable is relatively low, approximately -0.2. 

Keyword
Cointegration, Log-linear, Panel data and specification test
National Category
Economics and Business
Identifiers
urn:nbn:se:umu:diva-68914 (URN)10.1016/j.eneco.2012.11.026 (DOI)000316240100002 ()
Available from: 2013-05-06 Created: 2013-04-29 Last updated: 2017-12-06Bibliographically approved
3. Effects of demography and labor supply on household gasoline demand in Sweden: a semiparametric approach
Open this publication in new window or tab >>Effects of demography and labor supply on household gasoline demand in Sweden: a semiparametric approach
(English)Manuscript (preprint) (Other academic)
Abstract [en]

A typical gasoline demand model generally assumes that demand and labor supply are weakly separable. In this study, I relaxed the weak separability assumption by examining the effect of labor supply, measured by male and female working hours, on gasoline demand. I used a flexible semiparametric model that allowed for differences in response to income, age and labor supply, respectively. Using Swedish household survey data, the results indicated that the relationship between gasoline demand and income, age and labor supply were non-linear. The formal separability test rejects the null of separability between gasoline demand and labor supply. Furthermore, there was evidence indicating small bias in the estimates when one ignored labor supply in the model. 

Keyword
Derivatives, gasoline demand, labor supply and propensity score.
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-79700 (URN)
Funder
Swedish Energy Agency
Available from: 2013-08-29 Created: 2013-08-29 Last updated: 2013-08-29Bibliographically approved
4. Cooking fuel preferences among Ghanaian Households: an empirical analysis
Open this publication in new window or tab >>Cooking fuel preferences among Ghanaian Households: an empirical analysis
2015 (English)In: Energy for Sustainable Development, ISSN 0973-0826, Vol. 27, 10-17 p.Article in journal (Other academic) Published
Abstract [en]

This paper investigated the key factors influencing the choice of cooking fuels in Ghana. Results from the study indicated that education, income, urban location and access to infrastructure were the key factors influencing household's choice of the main cooking fuels (fuelwood, charcoal and liquefied petroleum gas). The study also found that, in addition to household demographics and urbanization, the supply (availability) of the fuels influenced household choice for the various fuels. Increase in household income was likely to increase the probability of choosing modern fuel (liquefied petroleum gas and electricity) relative to solid (crop residue and fuelwood) and transition fuel (kerosene and charcoal). I therefore proposed that poverty reduction policies, provision of education and modern infrastructure, as well as provision of reliable supply of modern fuels should be part of the policy framework in promoting the use of modern fuels in Ghana, especially for urban dwellers, while for rural dwellers the focus should be on how to efficiently use traditional fuels in a more environmentally friendly and sustainable way.

Keyword
Choice probability, Cooking fuel, Energy ladder, Multinomial probit
National Category
Economics
Identifiers
urn:nbn:se:umu:diva-79717 (URN)10.1016/j.esd.2015.04.003 (DOI)000359280000002 ()
Note

Originally included in thesis in manuscript form.

Available from: 2013-08-29 Created: 2013-08-29 Last updated: 2017-12-06Bibliographically approved

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Citation style
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Output format
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