Why estimate energy demand models

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1. Which countries consume the most dung and how do the energy statistics in the BP Statistical Review account for it?

2. Explain why consumption of a particular energy source typically ceases long before the stock of supply is exhausted.

3. Factor demands can be derived from firm profit maximization or from cost minimization at the profit-maximizing level of output. How do these factor demands differ?

4. Cost equations are often used to obtain factor demands. How can factor demands be obtained from a cost equation? Why would one obtain factor demands this way instead of obtaining them from the profit maximization problem directly?

5. Provide a simple example of a single-equation single-fuel demand equation that you could estimate using linear regression?

6. Why estimate energy demand models? What sorts of questions can be addressed by using estimates of a demand model?

Reference no: EM131392121

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