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Demand for natural gas in Kuwait: An empirical analysis using two econometric models
Author(s) -
Eltony M. Nagy
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(199611)20:11<957::aid-er206>3.0.co;2-n
Subject(s) - natural gas , economics , econometrics , econometric model , consumption (sociology) , error correction model , econometric analysis , gas consumption , short run , environmental science , cointegration , macroeconomics , engineering , environmental economics , waste management , social science , sociology
This paper estimates the demand for natural gas in Kuwait for the period 1975–93 using two models. A partial flow‐adjustment model and a co‐integration and error correction model. It is found that natural gas demand is inelastic with respect to price and income in the short and long run. Furthermore, natural gas consumption adjusts towards its long‐run level with about 61% of the adjustment occurring in the first year.