Despite its importance for policy purposes (including climate policy and the energy transition), evidence about the price elasticity of natural gas demand in the residential sector is very limited and based on inference from situations with modest variation in prices. We focus on a locale and time when price changes were extreme and presumably salient to consumers, namely Ukraine between 2013 and 2017. We exploit the tariff reforms and detailed micro-level household consumption records to estimate the price elasticity of the demand for natural gas. To isolate behavior, attention is restricted to those households that made no structural energy-efficiency upgrades to their homes, and thus kept the stock of gas-using capital fixed. We further examine the short-run elasticity by restricting the sample to a few months before and after the tariff changes. Our results suggest that under extreme price changes, households are capable of reducing consumption, even without installing insulation or making any other structural modifications to their homes. The price elasticity is about -0.16. Wealthier households, people living in multifamily buildings, and heavy users have more inelastic demands. Households reduced consumption even when they received "subsidies," namely lump-sum government assistance, suggesting that when the price signal is sufficiently strong, lump-sum transfers have only a minimal effect on consumption. We also find some evidence that the stronger the salience, the stronger the responsiveness to price, although this effect is modest and may partly overlap with that of income or baseline consumption. Our data also suggest that the consumers with the lowest uptake of energy efficiency improvements might be those who−by necessity or through skills−are the most productive at reducing energy use through behaviors.

World Energy Balances provides comprehensive energy balances for all the world's largest energy producing and consuming countries. It contains detailed data on the supply and consumption of energy for 150 countries and regions, including all OECD countries, over 100 other key energy producing and consuming countries, as well as world totals and various regional aggregates. The book includes graphs and detailed data by country for all energy sources - coal, gas, oil, electricity, renewables and waste - expressed in balance format. Alongside this, there are summary time series on production, trade, final consumption by sector, as well as key energy and economic indicators and an overview of trends in global energy production and use. More detailed data in original units are published in the companion publication World Energy Statistics.

This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.

This book covers available approaches to improving the performance and impact of long-term projections of the national energy sector development. In turn, it introduces an original multi-stage approach to narrowing down the uncertainty range of the input data and resulting projections. Its unique contribution is that it limits the scope for each of the projection timeframe segments step-by-step. This is done in the course of iterative calculations, which employ dedicated methods and other tools to elucidate and solve top-priority problems specific to each time segment. In closing, the book provides a detailed treatment of two essential research problems: 1) long-term forecasting for regional energy markets, and 2) the quantitative assessment of a) the barriers that are likely to hinder energy sector development and b) strategic-level energy security threats.

Every decision about energy involves its price and cost. The price of gasoline and the cost of buying from foreign producers; the price of nuclear and hydroelectricity and the costs to our ecosystems; the price of electricity from coal-fired plants and the cost to the atmosphere. Giving life to inventions, lifestyle changes, geopolitical shifts, and things in-between, energy economics is of high interest to Academia, Corporations and Governments. For economists, energy economics is one of three subdisciplines which, taken together, compose an economic approach to the exploitation and preservation of natural resources: energy economics, which focuses on energy-related subjects such as renewable energy, hydropower, nuclear power, and the political economy of energy resource economics, which covers subjects in land and water use, such as mining, fisheries, agriculture, and forests environmental economics, which takes a broader view of natural resources through economic concepts such as risk, valuation, regulation, and distribution Although the three are closely related, they are not often presented as an integrated whole. This Encyclopedia has done just that by unifying these fields into a high-quality and unique overview. The only reference work that codifies the relationships among the three subdisciplines: energy economics, resource economics and environmental economics. Understanding these relationships just became simpler! Nobel Prize Winning Editor-in-Chief (joint recipient 2007 Peace Prize), Jason Shogren, has demonstrated excellent team work again, by coordinating and steering his Editorial Board to produce a cohesive work that guides the user seamlessly through the diverse topics This work contains in equal parts information from and about business, academic, and government perspectives and is intended to serve as a tool for unifying and systematizing research and analysis in business, universities, and government

Large-scale macroeconomic models have been used extensively to analyze a wide range of important economic issues. They were originally developed to study the economy's response to monetary and fiscal policies. During the 1970s these models were expanded and revised to track the inflationary processes and to incorporate key energy variables so that they could be used to examine the impacts of energy price shocks.This study compares the responses of 14 prominent macroeconomic models to supply-side shocks in the form of sudden energy price increases or decreases and to policies for lessening the impacts of price jumps. Four energy price shocks were examined: oil price increases of 50 and 20 percent, an oil price reduction of 20 percent, and an 80 percent increase in domestic natural gas prices. Five policy responses were considered for offsetting the GNP impacts of the larger oil price increase: monetary accommodation, an income tax rate reduction, an increase in the investment tax credit for equipment, a reduction in the employer's payroll tax rate, and an oil stockpile release.The study was conducted by a working group comprised of about 40 modelers and potential model users from universities, business, and government. As in previous EMF studies, the group pursued two broad goals. Firstly, they sought to understand the models themselves by identifying important similarities as well as structural differences. Secondly, they sought to use the models to sharpen their understanding of energy shocks and of the related policy issues. Their conclusions appear as the first chapter in this volume, the remaining chapters providing more technical treatment of the key structural differences among the participating models as well as their use for evaluating energy policies.This volume is addressed particularly to those interested in the energy shock issue, as well as to those with a broader interest in macroeconomic models and policies.

California's energy efficiency policies and energy use patterns have attracted widespread national and international interest. Over the last three decades, the state has implemented a variety of regulatory and legislative measures aimed at reducing the demand for energy, through encouraging more efficient consumption. In a startling contrast to the nation as a whole, the state electricity consumption per capita has stayed relatively steady since 1970. A comparative graph of the state and national electricity intensities is called the Rosenfeld Curve, named after the influential former Commissioner of the California Energy Commission. This thesis examines the structural determinants of electricity consumption with a view to answering the question -- What fraction of the state-nation difference in electricity consumption intensity might reasonably be attributed to policy interventions? I begin with a simple decomposition analysis of the residential, industrial and commercial sectors, using empirical data from a variety of sources. I find that over two-thirds of the difference between state and national energy intensity may be attributed to structural factors that are independent of policy interventions, leaving a smaller, unexplained portion that could owe to program interventions (a share that has increased over time). I next consider the residential sector in detail, a topic that is the primary focus of my thesis. I describe residential consumption of electricity and secondary heating fuels, using a structural model of household energy demand estimated using micro-data from the period between 1993 and 2005. In doing so, I account for heterogeneity in household types in the population. After controlling for structural factors such as climate, I find evidence suggesting that policy may have been particularly effective in reducing the energy needed for heating and cooling end uses. I also find evidence of increasing policy effects over the ten years between 1995 and 2005. Additionally, the model suggests that incentive compatibility considerations may have resulted in inefficiently high energy consumption in rented dwellings. Overall, the econometric model indicates about 20 percent of the state nation difference in the residential sector may owe to program effects. These results are interesting as a retrospective look at the California experience, but more importantly as a benchmark of what might reasonably be expected from energy efficiency elsewhere in the world. They also underline the importance of using counterfactual policy evaluation techniques instead of comparisons of aggregate statistics in understanding policy impact.