Next Article in Journal
Modeling Woody Biomass Procurement for Bioenergy Production at the Atikokan Generating Station in Northwestern Ontario, Canada
Previous Article in Journal
Correction: Long, H. et al. More Wind Power Integration with Adjusted Energy Carriers for Space Heating in Northern China. Energies 2012, 5, 3279-3294.
Article Menu

Export Article

Open AccessArticle
Energies 2012, 5(12), 5055-5064;

Short-Run and Long-Run Elasticities of Diesel Demand in Korea

Department of Energy Policy, Graduate School of Energy & Environment, Seoul National University of Science & Technology, 232 Gongreung-Ro, Nowon-Gu, Seoul 139-743, Korea
Department of Energy IT, Gachon University, Bokjeong-dong, Sujeong-gu, Seongnam-si, Gyeonggi-do 461-701, Korea
Author to whom correspondence should be addressed.
Received: 10 August 2012 / Revised: 15 October 2012 / Accepted: 13 November 2012 / Published: 28 November 2012
Full-Text   |   PDF [245 KB, uploaded 17 March 2015]   |  


This paper investigates the demand function for diesel in Korea covering the period 1986–2011. The short-run and long-run elasticities of diesel demand with respect to price and income are empirically examined using a co-integration and error-correction model. The short-run and long-run price elasticities are estimated to be −0.357 and −0.547, respectively. The short-run and long-run income elasticities are computed to be 1.589 and 1.478, respectively. Thus, diesel demand is relatively inelastic to price change and elastic to income change in both the short-run and long-run. Therefore, a demand-side management through raising the price of diesel will be ineffective and tightening the regulation of using diesel more efficiently appears to be more effective in Korea. The demand for diesel is expected to continuously increase as the economy grows. View Full-Text
Keywords: elasticity; diesel demand; Korea; co-integration; error-correction model elasticity; diesel demand; Korea; co-integration; error-correction model

Figure 1

This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

Share & Cite This Article

MDPI and ACS Style

Lim, K.-M.; Kim, M.; Kim, C.S.; Yoo, S.-H. Short-Run and Long-Run Elasticities of Diesel Demand in Korea. Energies 2012, 5, 5055-5064.

Show more citation formats Show less citations formats

Related Articles

Article Metrics

Article Access Statistics



[Return to top]
Energies EISSN 1996-1073 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top