Volume 20, Issue 11 pp. 957-963
Research Article

Demand for natural gas in Kuwait: An empirical analysis using two econometric models

M. Nagy Eltony

M. Nagy Eltony

Economic Studies Department, Techno-Economics Division, Kuwait Institute for Scientific Research, P.O. Box 24885, 13109 Safat, Kuwait

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Abstract

This paper estimates the demand for natural gas in Kuwait for the period 1975–93 using two models. A partial flow-adjustment model and a co-integration and error correction model. It is found that natural gas demand is inelastic with respect to price and income in the short and long run. Furthermore, natural gas consumption adjusts towards its long-run level with about 61% of the adjustment occurring in the first year.

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