Long run demand for energy services: income and price elasticities over two hundred years

Fouquet, Roger (2014) Long run demand for energy services: income and price elasticities over two hundred years. Review of Environmental Economics and Policy, 8 (2). pp. 186-207. ISSN 1750-6824

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Abstract

This article investigates how the demand for energy services has changed since the Industrial Revolution. It presents evidence on the income and price elasticities of demand for domestic heating, passenger transport, and lighting in the United Kingdom over the last two hundred years. As the economy developed and energy service prices fell, income elasticities have generally followed an inverse U-shape curve, and price elasticities have generally followed a U-shape curve. However, these general trends also appear to have been affected by energy and technological transitions, which boosted demand (by either encouraging poorer consumers to fully enter the market or offering new attributes of value to wealthier consumers). The evidence presented offers insights that will be helpful for identifying likely future trends in energy use and carbon dioxide emissions, and for developing long-term climate policies.

Item Type:	Article
Official URL:	http://reep.oxfordjournals.org/
Additional Information:	© 2014 The Author © CC BY 4.0
Divisions:	Grantham Research Institute
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N73 - Europe: Pre-1913 N - Economic History > N7 - Transport, International and Domestic Trade, Energy, Technology, and Other Services > N74 - Europe: 1913- Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply
Date Deposited:	19 Aug 2014 14:56
Last Modified:	14 Nov 2024 04:06
URI:	http://eprints.lse.ac.uk/id/eprint/59070

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