The Asymmetric and Symmetric Effects of Changes in Price and Income on Natural Gas Demand in Iran Industry Sector

Aim of this paper is to survey asymmetric effects of natural gas price on it's demand in industrial sector and demand function of natural gas in this sector is derived. This paper surveyed existence of asymmetric effects of natural gas price in koyck model for period of 1991-2013. Results of this paper revealed that effects of natural gas price on it's demand in industry sector is symmetric in this period and effect of income changes on natural gas demand in this sector is asymmetric. In this period, as estimation results long run and short run elasticties of natural gas are -0.56 and -0.33 and long run and short run income elasticities of natural gas demand is 16/59.