Literature Review on Natural Gas Demand Price Elasticity

Natural gas demand price elasticity has a considerable impact on the determination of natural gas demand and price. This paper summarizes natural gas demand price elasticity estimation models, and presents the estimation process of short-term and long-term elastic coefficient. Moreover, the researches on natural gas demand price elasticity of industrial users and residential users are reviewed in detail respectively, on the basis of which the related conclusions are stated as follows: 1. In general, the own-price elasticity of natural gas is negative, and industrial user’s own-price elasticity is greater than the resident’s. 2. For different natural gas users, the absolute value of long-term price elasticity is greater than the absolute value of short-term price elasticity. 3. The cross-price elasticity between alternative energy and natural gas is positive, but the value is very small.