The demand for energy in the UK: A general equilibrium analysis |
| |
| Affiliation: | 1. King Abdullah Petroleum Studies and Research Center, P.O. Box 88550, Riyadh 11672, Saudi Arabia;2. Department of Economics and Center for Socio-Economic Research, Qafqaz University, Hasan Aliyev 120, Khirdalan AZ0101, Azerbaijan;3. Research Program on Forecasting, Economics Department, The George Washington University, 2115 G Street, NW, Washington DC 20052, USA;4. Department of Finance, Qafqaz University, Hasan Aliyev 120, Khirdalan, Azerbaijan |
| |
| Abstract: | Previous research into the demand for energy has treated economic activity as an explanatory variable. However, economic theory suggests that economic activity is not independent of energy prices and energy demand. We explore the two-way causality between energy demand and economic activity in the context of a macroeconometric model of the UK economy. Inter alia this study suggests that the demand for energy is more price elastic in general equilibrium than it is under the more conventional assumptions of partial equilibrium. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
