Estimating petroleum products demand elasticities in Nigeria: A multivariate cointegration approach

Examining the role of energy efficiency and non-economic factors in energy demand and CO2 emissions in Nigeria: Policy implications

“…Since economic theory does not state the exact functional form it should take, researchers often choose the exact form for their energy demand model for empirical studies. Consequently, different specifications of energy demand functions are found in energy literature (Hunt and Ninomiya, 2005;Iwayemi et al, 2010). This study adopts the most common specification, the log-linear form, by re-writing Eq.…”

“…Previous studies have attempted to analyse energy demand for Nigeria and, in a few instances, the associated CO 2 emissions (see for example Adegbulugbe, 1991;Iwayemi et al, 2010;Omisakin et al, 2012;Suleiman and Muhammad, 2012). In many of these studies, the authors focused on the common economic factors, income and price, as the major determinants of energy consumption, while energy efficiency (or technical progress) 5 and exogenous non-economic factors such as consumers' behaviour, lifestyle and attitudes towards the environment 6 have been neglected or assumed insignificant.…”

Incidence and Impact

“…The analysis is complicated by highly distorted and manipulated markets, significant supply shortages and access barriers (Iwayemi, Adenikinju, & Babatunde, 2010). Omisakin et al (2012) find that energy demand in Nigeria is relatively inelastic: long-run price elasticities are estimated to be -0.016 for petrol and -0.205 for kerosene.…”

“…Omisakin et al (2012) find that energy demand in Nigeria is relatively inelastic: long-run price elasticities are estimated to be -0.016 for petrol and -0.205 for kerosene. Iwayemi et al (2010) use cointegration regressions to estimate statistically significant long-run price elasticities of -0.115 for kerosene, and -0.106 for aggregate energy products (i.e. petrol, diesel and kerosene).…”

Determinants of Oil Demand in OECD Countries: An Application of Panel Data Model

“…Second, as stated by Lee and Lee (2010) and , in projecting the future demand for oil and planning the required capacity to meet future domestic consumption, having accurate information on income and price elasticities is important. Third, the estimation of price and income elasticities of oil demand is essential in designing policies concerned with negative environmental externalities of the energy sector and in implementing more informed and successful energy policies (Iwayemi et al, 2010). Finally, accurate knowledge about income and price elasticities offers policy makers a guideline for the levels to which oil prices should be increased to reduce domestic consumption and pinpoints the potential for the market to realize energy conservation objectives (Al-Faris, 1996;Lee and Lee, 2010;Al-Yousef, 2013).…”