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The dynamics of United Kingdom regional energy demand
Author(s) -
Smyth Michael
Publication year - 1996
Publication title -
international journal of energy research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.808
H-Index - 95
eISSN - 1099-114X
pISSN - 0363-907X
DOI - 10.1002/(sici)1099-114x(199602)20:2<93::aid-er221>3.0.co;2-z
Subject(s) - cointegration , economics , northern ireland , energy consumption , energy demand , energy (signal processing) , primary energy , consumption (sociology) , error correction model , econometrics , geography , agricultural economics , natural resource economics , ecology , statistics , social science , ethnology , mathematics , sociology , biology , history
Differences in regional energy‐elasticities may be caused by relative differences in primary energy sources and endowments but they may also arise from differences in economic structure and/or consumption behaviour. This paper examines some long‐run energy demand relationships across three sectors — domestic, industrial/commercial and transport in Scotland, Northern Ireland and the United Kingdom as a whole. The use of cointegration and error correction techniques uncovers differences in dynamic response between the energy‐rich Scottish region and the energy‐poor Northern Ireland region. There are significantly lower short‐run price‐elasticities in all sectors in Northern Ireland than in Scotland and the United Kingdom overall, whereas the income‐elasticities in the energy‐poor region are larger.