| Author | Bisht, Khadk Bahadur |
| Call Number | AIT RSPR no.ET-93-02 |
| Subject(s) | Energy consumption--Economic aspects
|
| Note | A research submitted in partial fulfillment of the requirement for the degree of
Master of Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | The choice of the optimal functional form as an econometric problem in estimating
energy-GDP relationship is investigated with the help of Box-Cox transformation using
maximum likelihood estimation procedure. The functional relationship between aggregate
energy and real gross domestic product (GDP) and between electricity consumption-GDP are
examined for selected Asian countries using time series data from 1960 to 1990. In majority
of the cases all three special viz. loglinear, linear and semilog functional specifications are
rejected, suggesting no strong evidence in favor of any particular functional form; thus making
the presumption of functional form very much arbitrary. In those cases, where the chosen
functional form is among linear, loglinear or semilog; the stability of parameters using Chowtest
is conducted with two data set by dividing the complete time series data into two regression
data set from 1960-1973 and 1974-1990. It is found that estimated parameters are not stable
over time and changed drastically. This test shows the mistake one makes by pooling together
two set of data with different time periods without some modification in the functional
relationship.
Difference in selected optimal function and estimated results resulting due to difference
in employed aggregation procedure is examined by two most common; BTU and Divisia;
aggregation method using data after 1973 (where energy commodity price data are available).
There is inconsistency in choosing the functional form. The result has suggested that values of
estimated parameters depend on the method used for price and energy aggregation. |
| Year | 1993 |
| Type | Research Study Project Report (RSPR) |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Shrestha, Ram M.; |
| Examination Committee(s) | Amin, A.T.M. Nurul;Nagarur, Nagendra N.;Heredia , J.B.; |
| Scholarship Donor(s) | Government of the Netherlands; |
| Degree | Research Studies Project Report (M.Eng.) - Asian Institute of Technology, 1993 |