(Project concluded on November 30, 2020)
The objective of this research is to undertake econometric estimate of price elasticity and income elasticity for demand for natural gas in Brazil. The work will pay special attention to the industrial sector of the country, which has been responsible for over 60% of total firm Brazilian natural gas consumption, but also factor in the recent change in the electricity generation mix, including a higher share of thermo plants. Terms of reducing carbon emissions to promote reductions mainly by switching to lower carbon alternatives will be considered for possible scenarios. To estimate price and income elasticities for Brazilian demand NG in several segments, the project will apply econometric tools. The main objective is to examine how demand reacts to increase / decrease in energy prices and disposable income. The modeling and analysis and take into account the dynamics and the prospects for increased international pressure to reduce emissions and the Brazilian short and long-term prospects for electricity generation.
TEAM
Project Coordinator
Marcio Issao Nakane (FEA-USP)
Partners
Universidade da Virgínia /UVa
Colorado School of Mines
Oteko