ESTIMATION OF RESIDENTIAL ENERGY DEMAND IN TURKEY AND EXPENDITURE GROUPS: EVIDENCE FROM 2012

Res Işıl, Şirin Selçuk, Assist, Altuğ Murat, Köktaş, Ahmet Burçin, Yereli
unpublished
Energy demand in Turkey has been growing at a rapid rate in recent years. Especially residential energy demand plays a substantial role in the composition of overall energy demand. In this paper, price and expenditure elasticities of energy demand in the overall residential sector and in different expenditure groups along with the effects of lifestyle related variables and demographic variables. We use the survey data of Turkish Household Budget data and Heckman selection model is used to
more » ... el is used to estimate the elasticities. The empirical results show that the residential energy demand price and expenditure elasticities are-2.41 and 0.28, respectively. However when we examine the income groups we find significant differences among them in particular their price elasticities. Households on high expenditures are more sensitive to price changes. The results have important policy implications and emphasize differentiated policy measures in the residential sector.
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