Meta-Analysis of Income and Price Elasticities Energy Demand: Some Public Policy Implications for Latin America

  • Luis Miguel Galindo Comisión Económica para América Latina y el Caribe (Cepal). División de Desarrollo Sostenible y Asentamientos Humanos
  • Joseluis Samaniego Comisión Económica para América Latina y el Caribe (Cepal). División de Desarrollo Sostenible y Asentamientos Humanos
  • Jimy Ferrer Carbonell Comisión Económica para América Latina y el Caribe (Cepal). División de Desarrollo Sostenible y Asentamientos Humanos
  • José Eduardo Alatorre Comisión Económica para América Latina y el Caribe (Cepal). División de Desarrollo Sostenible y Asentamientos Humanos
  • Orlando Reyes Comisión Económica para América Latina y el Caribe (Cepal). División de Desarrollo Sostenible y Asentamientos Humanos
Keywords: Energy demand, income and price elasticities, meta-analysis and public policy

Abstract

The aim of this paper is to analyze the variation in empirical estimates of the income and price elasticities of energy demand. The evidence presented, through a meta-analysis, allows identification of the weighted average of the income and price elasticities, shows that the estimates are very heterogeneous, that there is publication bias, and that factors such as region, energy sector, among others, affect its volatility. The evidence also indicates that income elasticity in Latin America is greater than in the OECD countries, and that the price elasticity of energy demand is lower in Latin America than in the OECD countries. Therefore, continued economic growth in Latin America will be accompanied by a growth in energy demand. Moreover, the establishment of a tax in Latin America, under the current elasticities, is less effective and will be insufficient to control the increase in energy consumption.

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How to Cite
Galindo, L. M., Samaniego, J., Ferrer Carbonell, J., Alatorre, J. E., & Reyes, O. (2015). Meta-Analysis of Income and Price Elasticities Energy Demand: Some Public Policy Implications for Latin America. Economia, 38(75), 9-40. Retrieved from https://revistas.pucp.edu.pe/index.php/economia/article/view/13731