This paper demonstrates the importance of adequately modelling the Underlying Energy Demand Trend (UEDT) and seasonality when estimating transportation oil demand for the UK and Japan. The structural time series model is therefore employed to allow for a stochastic underlying trend and...

The precise role of technical progress in estimated energy demand functions has not been well researched. Traditionally a deterministic time trend has been used, implicitly assuming technical progress continues at a fixed rate over time. In this paper, the structural time series model is...

This paper examines the long-run relationship between energy demand, GNP and energy price in Japan using data covering 1887 – 1998. It is found that, if an underlying energy demand trend (UEDT) is appropriately incorporated, an econometric model produces a long-run income elasticity of unitary...