We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Economic Development, Energy Market Integration and Energy Demand: Implications for East Asia

Economic Development, Energy Market Integration and Energy Demand: Implications for East Asia
Date:
24 August 2012
Authors:
Yu Sheng, Xunpeng Shi
Tags:

Print Article:

Abstract


This paper uses the general method of moment (GMM) regression technique to estimate an cross-country energy demand function with a data set covering 71 countries over the period of 1965-2010. The estimated results show that rapid economic growth due to industrialization or urbanization tends to increase the energy consumption per capita, which in turn may generate a surge in the overall demand for energy. Economic growth also leads to lower price and income elasticities. However, energy market integration can help to reduce the energy demand pressure and to smooth the demand shock through decreasing the income elasticity and increasing the price elasticity in particular in the long run. This finding can be used to explain how cross-country institutional arrangement related to energy market may affect energy consumption patterns over the period of rapid economic growth and offer policy implications for East Asia, which is diversified in terms of development level.

ERIA-DP-2012-14.pdf

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Latest Articles

energy, hydrogen, carbon neutrality
16 July 2024
Editor(s)/Author(s): Shigeru Kimura, Alloysius Joko Purwanto, Citra Endah Nur Setyawati, Setsuo Miyakoshi
Hydrogen is a crucial fuel for achieving global carbon neutrality, and ERIA has been conducting[...]
Energy, Energy Transition, Carbon-neutral
12 July 2024
Editor(s)/Author(s): Han Phoumin, Yamada Fumiko
ASEAN is committed to developing renewable energy sources as part of the energy transition to[...]