Abstract
This paper attempts to estimate the demand function for the transport LPG and to analyze long-run and short-run price and income elasticities. In addition, the paper measures consumer surplus and economic value ensuing from the transport LPG consumption by utilizing the estimated long-run price elasticity. The price and the income data are the monthly real transport LPG price and the monthly composite index adjusted by real transport LPG price from 2003 to 2012. Unit root test, co-integration test and error correction model are to take the procedure of estimation of demand curve. The demand for transport LPG is considered to be inelastic and the long-run demand is more elasticity than that of short-run. Price elasticity of demand estimate here is -0.422, and the estimated consumer surplus and economic value in 2010/03 are 966 and 1,781 billion won, respectively.
| Translated title of the contribution | Estimation and utilization of transport LPG demand function |
|---|---|
| Original language | Korean |
| Pages (from-to) | 301-308 |
| Number of pages | 8 |
| Journal | 에너지공학 |
| Volume | 21 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 2012 |