Speaker: David Broadstock, Associate Professor, RIEM
Host: Dayong Zhang, Associate Professor, RIEM
Time: 14:30--16:00, Friday, Dec.19
Venue: H515 Yide Hall, Liulin Campus
Abstract: With a view to reconciling the heterogeneity among a panel of countries, a heterogeneous(semi-parametric) model of energy consumption is estimated, that can be formally aggregated up to the group i.e. the specification resolves heterogeneity and aggregation problems at the same time. Price and income elasticities differ significantly across the member countries, with long-run price elasticities ranging from -1.29 to -0.33 and income elasticities from 0.26 to 1.19. Testing statistically supports the need to model country-specific heterogeneity but also reveals that the average elasticity or ‘structural’ elasticity (e.g. a common/shared reference elasticity) is also significant i.e. differences are important but do not preclude the existence of the group. Via a ‘contribution analysis’ with particular emphasis given to the concept of lock-in effects, it is shown that current period energy consumption is determined as much by ‘locked-in’ effects as it is by price or income changes in the current period.
About the speaker: Dr. David Broadstock is an associate professor in the Research Institute of Economics and Management, Southwestern University of Finance and Economics. He is specialized in energy economics, transportation and environmental economics. His recent publication appears in the Energy Journal, Energy Economics, Transportation Science etc.
