Open AccessImpact of shocks in domestic aggregate demand for natural gas on domestic aggregate energy consumption in China
Author(s) -
Manzoor Ahmad,
Shehzad Khan,
Kiran Alim
Publication year - 2018
Publication title -
journal of applied economics and business studies
Language(s) - English
Resource type - Journals
eISSN - 2663-693X
pISSN - 2523-2614
DOI - 10.34260/jaebs.219
Subject(s) - economics , cointegration , natural gas , consumption (sociology) , aggregate (composite) , energy consumption , aggregate demand , econometrics , aggregate behavior , gas consumption , aggregate supply , aggregate expenditure , macroeconomics , monetary policy , chemistry , environmental economics , engineering , social science , materials science , organic chemistry , sociology , electrical engineering , composite material
This paper examines the possible asymmetric transmissions from domestic aggregate demand for natural gas to domestic aggregate energy consumption in China using time series data from 1970 to 2016. The nonlinear autoregressive distributed lags (NARDL) model is employed to check the possibility of long-term asymmetric nexus among variables. The empirical findings confirm the existence of symmetric cointegration between the domestic aggregate demand for natural gas and domestic aggregate energy consumption. The results also indicate that positive shocks in domestic aggregate energy consumption lead an increase in domestic aggregate energy consumption in both short-run and long-run. While the NARDL dynamic multiplier graph suggests that the positive component of domestic aggregate demand for natural gas has deep impact on domestic aggregate energy consumption.