Policy implications of considering pre-commitments in US aggregate energy demand system Academic Article

abstract

• 2016 Elsevier Ltd Linear approximations of the Generalized Almost Ideal Demand System and Almost Ideal Demand System for U.S. energy are compared to contrast the explicit inclusion and exclusion of pre-committed consumption levels. Results indicate that pre-commitment levels, the quantity of a good that is consumed in the short run with little regard for price, helps to better explain energy demand in the U.S. compared to the system that does not explicitly consider pre-commitments. Policy implications are if pre-commitments are a legitimate assumption, larger price changes are necessary to achieve a given policy objective than if there are no pre-commitments.

authors

• Dharmasena, Senarath
• Mjelde, James

published proceedings

• ENERGY POLICY

author list (cited authors)

• Rowland, C. S., Mjelde, J. W., & Dharmasena, S.

citation count

• 11

complete list of authors

• Rowland, Christopher S||Mjelde, James W||Dharmasena, Senarath

publication date

• January 2017

publisher

• Elsevier  Publisher

published in

• Energy Policy  Journal

keywords

• Almost Ideal Demand System Model
• Energy Demand
• Generalized Almost Ideal Demand System Model
• Pre-commitments

Digital Object Identifier (DOI)

• 10.1016/j.enpol.2016.12.041

start page

• 406

end page

• 413

volume

• 102

issue

• C

URL

• http%3A%2F%2Fdx.doi.org%2F10.1016%2Fj.enpol.2016.12.041

user-defined tag

• 7 Affordable and Clean Energy