The Analysis of factor affecting the household and commercial demand for gas(A case study of Gilan Province)

Natural gas enjoys a significant place among all energy sources and plays an important role in the economy of Iran in meeting the growing energy needs of country. Furthermore the household and commercial sector has the largest share in gas consumption. In this paper attempts are made to delineate factors affecting the household and commercial demand for natural gas with special reference to Gilan province.Towards this end this paper has measured the short run and long run price elasticity of demand for natural gas for household and commercial consumption sector respectively. The findings of this study have indicated that the short run and long price elasticity coefficient is in order of -2354and -23.6respectively. The model has also estimated the short and long run cross elasticity of demand for household and commercial sector. Their respective coefficients are found to be in order of 2365and 23...