THE IMPACT OF ENERGY PRICE INCREASES ON ENERGY DEMAND: THE CASE OF TURKISH MANUFACTURING INDUSTRY


Sezer P.

International Symposium on Energy Management and Sustainability -2022, İstanbul, Turkey, 5 - 09 April 2022, pp.1-3

  • Publication Type: Conference Paper / Summary Text
  • City: İstanbul
  • Country: Turkey
  • Page Numbers: pp.1-3
  • Hacettepe University Affiliated: Yes

Abstract

In this study the affect of the energy price increases on the energy demand is analyzed for Turkish manufacturing firms between 2005-2013 using firm level micro data. For this purpose a translog cost function and cost share equations are jointly estimated by the itterated seemingly unrelated regressions (iSUR) method. Using the coefficient estimations own price elasticity of energy is calculated for the whole manufacturing firms and also firms grouped by firm size and intensity of energy use. The result for the whole industry shows that for an average Turkish manufacturing firm a %1 increase in energy price is associated with a %1.25 decrease in energy demand. The results for the firm groups reveal that own price elasticity of energy increases as the firm size and energy use intensity increases.

 

Keywords: Energy price, energy demand, own price elasticity