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A dynamic econometric model of Thailand manufacturing energy demand

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Abstract:

The purpose of this article is to employ the dynamic translog framework to model inter-factor and inter-fuel energy demand for the Thai manufacturing sector. The Denny et al. (1981) and Lynk (1989) framework, which proposes a dynamic adjustment for capital stock is employed to motivate the estimated of factor demand and fuel share equations. Three factors: energy, labour and capital; and five fuel types: fuel oil, diesel oil, liquified petroleum gas (LPG), electricity, and coal and lignite; are examined. Regression diagnostics support the empirical specification. Numerous factor and fuel substitution possibilities are identified, with some policy implications described.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600707167

Affiliations: 1: Faculty of Economics, Ramkhamhaeng University, Bangkok, Thailand 2: School of Commerce, Charles Sturt University, Australia

Publication date: September 1, 2007

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