Cointegration and the demand for energy in Fiji. (10th May 2011)

• Record Type: Journal Article
• Authors: Kumar, Saten
• Is Part Of: International journal of global energy issues. Volume 35:Number 1(2011)
• Page Start: 85
• Page End: 97
• Publication Date: 2011-05-10
• Subjects: energy consumption -- income elasticity -- energy prices -- price elasticity -- Fiji -- cointegration -- energy demand -- GDP -- gross domestic product; Power resources -- Periodicals; 333.79
• Languages: English
• ISSNs: 0954-7118

Abstract

This paper applies alternative time series techniques such as general to specific (GETS) and Johansen maximum likelihood (JML) to estimate the long-run income and price elasticities of demand for energy for Fiji. We also test for the causal relationship between energy consumption, GDP and energy prices using the Granger causality tests. Our results imply that there is a uni-directional causality running from GDP to energy consumption.