Exact welfare measurement for double-log demand with partial adjustment

Empirical Economics

Volumn 42, Issue 1, 2012, Pages 171-180

  Woo, C K ^a,b   Zarnikau, J ^c,d   Kollman, E ^a  

^a Energy and Environmental Economics Inc   (United States)

^b HONG KONG BAPTIST UNIVERSITY   (Hong Kong)

^c Frontier Associates LLC   (United States)

^d UNIVERSITY OF TEXAS AT AUSTIN   (United States)

Author keywords

Compensating variation; Consumer surplus; Double log demand; Welfare measures

Indexed keywords

COMPENSATION SYSTEM; DEMAND ANALYSIS; ENERGY MARKET; TAX SYSTEM; WELFARE ECONOMICS;

UNITED STATES;

EID: 84855604988     PISSN: 03777332     EISSN: None     Source Type: Journal    
DOI: 10.1007/s00181-010-0416-1     Document Type: Article

References (49)

1. Adamowicz WL, Fletcher JJ, Graham-Tomasi T (1989) Functional form and the statistical properties of welfare measures. Am J Agric Econ 71(2): 414-421.
2. Arano KG, Blair B (2008) An ex-post welfare analysis of natural gas regulation in the industrial sector. Energy Econ 30: 789-806.
3. Arbues F, Garcia-Valinas MA, Martinez-Espineira R (2003) Estimation of residential water demand: a state of the art review. J Socio Econ 32: 81-102.
4. Bali T (2000) U. S. money demand and the welfare cost of inflation in a currency-deposit model. J Econ Bus 52(3): 233-258.
5. Bohi D, Zimmerman ME (1984) An update on econometric studies of energy demand behavior. Annu Rev Energy 9: 105-154.
6. Borenstein S, Bushnell JB, Wolak FA (2002) Measuring market inefficiencies in California's restructured wholesale electricity market. Am Econ Rev 92(5): 1376-1405.
7. Borenstein S (2005) The long-run efficiency of real-time electricity pricing. Energy J 26(3): 93-116.
8. Brons M, Nijkamp P, Pels E, Rietveld P (2008) A meta-analysis of the price elasticity of gasoline demand, a SUR approach. Energy Econ 30: 2105-2122.
9. Dahl C (1993) A survey of energy demand elasticities in support of the development of the NEMS. ftp://ftp. eia. doe. gov/pub/oiaf/elasticityurvey/elasticitysurvey_dahl. pdf.
10. Dargay JM, Goodwin PB (1995) Evaluation of consumer surplus with dynamic demand. J Transp Econ Policy 29(2): 179-193.
11. Erickson EW (1985) Special tax issue. Energy J 6.
12. Espey M (1998) Gasoline demand revisited: an international meta-analysis of elasticities. Energy Econ 20: 273-295.
13. Espey JA, Espey M (2004) Turning on the lights: a meta-analysis of residential electricity demand elasticities. J Agric Appl Econ 36: 65-81.
14. Fischer C, Newell R (2008) Environmental and technology policies for climate mitigation. J Environ Econ Manag 55(2): 142-162.
15. Fischer C, Harrington W, Parry IWH (2007) Should automobile fuel economy standards be tightened. Energy J 28(4): 1-29.
16. Frenkel JA (1977) The forward exchange rate, expectations, and the demand for money: the German hyperinflation. Am Econ Rev 67(4): 653-670.
17. Freund CL, Wallich CI (1996) The welfare effects of raising household energy prices in Poland. Energy J 17(1): 53-77.
18. Greene DL, Ahmad S (2005) Cost of oil dependence: a 2005 update. http://www. environment. hawaiiresourcelibrary. com/costofoil2005. pdf.
19. Greene DL, Lieby PN (1993) The social cost to the U. S. of monopolization of the world market, 1972-1991. http://www. osti. gov/energycitations/product. biblio. jsp?osti_id=814565.
20. Hall A, Rossana R (1991) Estimating the speed of adjustment in partial adjustment models. J Bus Econ Stat 9(4): 441-453.
21. Hartman RS (1979) Frontiers in energy demand modeling. Ann Rev Energy 4: 433-466.
22. Hausman JA (1981) Exact consumer surplus and deadweight loss. Am Econ Rev 71: 662-676.
23. Hausman JA, Newey WK (1995) Nonparametric estimation of exact consumer surplus and deadweight loss. Econometrica 63(6): 1445-1476.
24. Hayes K, Porter-Hudak S (1987) Regional welfare loss measures of the 1973 oil embargo: a numerical methods approach. Appl Econ 19: 1317-1327.
25. Heien D (1988) Consumer welfare measures: some comparative results. Northeastern J Agric Resour Econ 17(2): 102-110.
26. Henderson JM, Quandt RE (1980) Microeconomic theory: a mathematical approach. McGraw-Hill, New York.
27. Holland SP, Mansur ET (2006) The short-run effects of time-varying prices in competitive electricity markets. Energy J 27(4): 127-155.
28. Hope E, Singh B (1995) Energy price increases in developing countries. http://www-wds. worldbank. org/external/default/WDSContentServer/WDSP/IB/1995/03/01/000009265_3970311121705/Rendered/PDF/multi_page. pdf.
29. Hughes J, Knittel C, Sperling D (2008) Evidence of a shift in the short-run price elasticity of gasoline demand. Energy J 29(1): 113-134.
30. Hwang HS (1985) Test of the adjustment process and linear homogeneity in a stock adjustment model of money demand. Rev Econ Stat 67(4): 689-692.
31. Irvine IJ, Sims WA (1998) Measuring consumer surplus with unknown Hicksian demands. Am Econ Rev 88(1): 314-322.
32. Kling CL (1989) The importance of functional form in the estimation of welfare. West J Agric Econ 14(1): 168-174.
33. Kreps DM (1990) A course in microeconomic theory. Harvester Wheatsheaf, New York.
34. Levedahl JW (1995) A theoretical and empirical evaluation of the function forms used to estimate the food expenditure equation of food stamp recipients. Am J Agric Econ 77(4): 960-968.
35. Mas-Colell A, Whinston MD, Green JR (1995) Microeconomic theory. Oxford University Press, Oxford.
36. Ozuna T, Jones L, Capps O (1993) Functional form and welfare measures in truncated recreation demand models. Am J Agric Econ 75(4): 1030-1035.
37. Palmer K, Burtraw D (2005) Cost-effectiveness of renewable electricity policies. Energy Econ 27: 873-894.
38. Pope R, Green R, Eales J (1980) Testing for homogeneity and habit formation in a flexible demand specification of U. S. meat consumption. Am J Agric Econ 62(4): 778-784.
39. Sioshansi R, Denholm P, Jenkin J, Weiss J (2009) Estimating the value of electricity storage in PJM: arbitrage and some welfare effects. Energy Econ 31: 269-277.
40. Stynes DJ, Peterson GL, Rosenthal DH (1986) Log Transformation bias in estimating travel cost models. Land Econ 62(1): 94-103.
41. Taylor L (1975) The demand for electricity: a survey. RAND J Econ 6: 74-110.
42. Tishler A, Newman J, Spekterman I, Woo CK (2008) Assessing the options for a competitive electricity market in Israel. Utilities Policy 16: 21-29.
43. U. S. Bureau of Economic Analysis. http://www. bea. gov/.
44. U. S. Energy Information Administration. http://www. eia. doe. gov/oil_gas/petroleum/data_publications/wrgp/mogas_history. html.
45. Vartia YO (1983) Efficient methods of measuring welfare change and compensated income in terms of ordinary demand functions. Econometrica 51(1): 79-98.
46. Wiser R, Bolinger M, St. Clair M (2005) Easing the natural gas crisis: reducing natural gas prices through increased deployment of renewable energy and energy efficiency. http://eetd. lbl. gov/ea/EMS/reports/56756. pdf.
47. Willig R (1976) Consumer's surplus without apology. Am Econ Rev 66: 589-597.
48. Woo CK (1994) Managing water supply shortage: interruption vs. pricing. J Public Econ 54: 145-160.
49. Zarnikau J (2003) Functional forms in energy demand modeling. Energy Econ 25: 603-613.