Estimating Long Run and Short Run Natural Gas Demand in Home Consumption

Natural gas high consumption in home sector is an important issue in Iranian economy. The data confirm that the increase of natural gas consumption in Iran is dramatically high near 9. 9 percent. This paper estimates long run and short run natural gas demand by using ARDL، ECM models during 1999-2009. The results indicate that natural gas can''t be substituted by electricity; there is a long run relationship between the variables; price elasticity of natural gas is -0. 12 and -o. 36 in short run and long run respectively but not statistically significant and income elasticity، in short run and long run، is 0. 627 and 0. 88 respectively.