ESTIMATING DEMAND FUNCTION FOR ELECTRICITY IN INDUSTRIAL SECTOR OF IRAN USING STRUCTURAL TIME SERIES MODEL (STSM)Zohreh Shirani-Fakhr, Rahman Khoshakhlagh and Alimorad Sharifi Applied Econometrics and International Development, 2015, vol. 15, issue 1, 143-160 Abstract: This case study estimated an electricity demand function for industrial sector of Iran by applying the structural time series technique to quarterly data for 2000q1-2011q4. In addition to identifying the size and significance of the price and output elasticities, this technique also uncovers UEDT. It is found that the estimated long-run and short-run industrial output elasticities are respectively, 0.85 and 0.36 and the estimated long-run and short-run industrial energy price elasticities are -0.47 and -0.27, respectively. The results suggest that the nature of the trend is not linear and deterministic but stochastic in form. The UEDT for the electricity usage of the industrial sector shows an upward slope. Keywords: Industrial Electricity Demand; Underlying Energy Demand Trend (UEDT); Structural Time Series Model (STSM); Elasticities. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:15:y:2015:i:1_11 Ordering information: This journal article can be ordered from Access Statistics for this article More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development |
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