THE PRICE AND INCOME ELASTICITIES OF DEMAND FOR NATURAL GAS: THE CASE OF SELECTED EUROPEAN UNION COUNTRIES AND TURKEY

In this framework, in the current study, it is aimed to estimate the degree of dependence on the use of natural gas, which plays an important role in the development process of national economies. In the analysis, selected by Turkey between the years 2007-2015 with housing prices in the industrial sector of the natural gas demand in European Union Countries and is focused on estimating the income elasticity. The relationship between the variables in the established model was estimated by the Panel ARDL method. The empirical analysis results have shown that the price and income elasticity in the housing and sector in the selected countries in the long run is -0.60, 0.62; It shows -1.52 and 0.50 in the industrial sector. In the short term, there was no significant price elasticity coefficient in the residential and industrial sectors, while income elasticity was calculated as 0.45 and 1.62, respectively.