Estimating Price Elasticity of Demand for Motor Fuel in the Transport Sectors
Modeling of long-term forecasts of prices and demand on regional energy markets requires accounting for the future changes in the interactions between the greater economy and its energy sector, along with the possible emergence of new factors and specific regional features determining those interac...
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| Format: | Article |
| Language: | Russian |
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Economic Research Institute of the Far East Branch of the Russian Academy of Sciences
2015-03-01
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| Series: | Prostranstvennaâ Èkonomika |
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| Online Access: | http://spatial-economics.com/eng/images/spatial-econimics/1_2015/SE.2015.1.109-122.Mazurova.pdf |
| Summary: | Modeling of long-term forecasts of prices and demand on regional energy markets requires accounting for the future changes in the interactions between the greater economy and its energy sector, along with the possible emergence of new factors and specific regional features determining those interactions. The proposed approach allows the study of a correlation between demand and prices for motor fuel, taking into account the competition of energy carriers, the dynamics of energy prices, resource constraints, the use of new technologies and the uncertainty of input data. The main feature of the proposed approach is the combined estimation of the price elasticity of demand for motor fuel with optimization of fuel supply in the region. Thus the author determined elasticity of demand based on the comparison of economic efficiency of the use of different fuels. The study includes results of experimental calculations and forecasted price according to demand for motor fuel in freight transportation for the expected development conditions of the Far Eastern federal district |
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| ISSN: | 1815-9834 2587-5957 |