Estimation of gasoline, electricity and gas demand system for urban households of Iran

One of the most important issues in public sector economics is the formulation of compensatory policies and pricing of energy carriers.The purpose of this study is to estimate the income and price elasticities of energy carriers for urban households in Iran. Therefore, the demand system of energy carriers including "gasoline", "household electricity" and "household gas" for urban households has been estimated by the pooled data of "household-year" with 77758 households during the period 2016-2019. This estimate is made in two cases: all urban households and households that have consumed gasoline.One of the distinguishing features of this study compared to previous studies is the use of monthly price index data with cross-sectional household budget data. The results show that "gasoline", "household electricity" and "household gas" are essential. Also, gasoline and household electricity are inelastic and household gas is estimated to be elastic.