A primary econometric approach to modeling and forecasting the demand for fuelwood in Turkey


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Kayacan B. , Ucal M. S. , Ozturk A., BALI R., KOCER S., KAPLAN E.

JOURNAL OF FOOD AGRICULTURE & ENVIRONMENT, cilt.10, ss.934-937, 2012 (SCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 10
  • Basım Tarihi: 2012
  • Dergi Adı: JOURNAL OF FOOD AGRICULTURE & ENVIRONMENT
  • Sayfa Sayıları: ss.934-937

Özet

A primary econometric approach is presented to understand the determinants of variation in national demand for domestically-produced fuelwood in Turkey. Also included in this study is a demand forecast for fuelwood based upon the econometric model proposed in this study. Being in multiplicative form originally, the proposed model is converted in to a double-log or log-linear form, for the ease of immediate interpretation of the parameter estimates in respect of elasticities. Parameter estimation is based on a panel and time series data set that belongs to the 15-year period between 1995 and 2009. The demand forecast presented has a horizon of 7 years beyond 2009. Major findings of the research include: 1) fuelwood demand in Turkey appears to conform to the law of demand with an inverse price-demand relationship; 2) fuelwood demand is notably price-sensitive with relatively high price elasticity; 3) fuelwood does not appear to be a related (complementary or substitute) good with coal and natural gas; and 4) fuelwood in Turkey is likely to be a "normal good" in respect of demand-income relationship. Meanwhile, based upon the proposed model here, fuelwood demand in Turkey may reasonably continue to show a downward trend till a level of 5 million m(3) per annum, which is an about 50% reduction from the demand level in 1995. Further research is particularly needed for Turkey in view of the rapidly changing socio-economic profile of rural and urban population, which is being reflected in the demand for energy from wood in forms besides wood in the raw.

Abstract

A primary econometric approach is presented to understand the determinants of variation in national demand for domestically-produced fuelwood in Turkey. Also included in this study is a demand forecast for fuelwood based upon the econometric model proposed in this study. Being in multiplicative form originally, the proposed model is converted in to a double-log or log-linear form, for the ease of immediate interpretation of the parameter estimates in respect of elasticities. Parameter estimation is based on a panel and time series data set that belongs to the 15-year period between 1995 and 2009. The demand forecast presented has a horizon of 7 years beyond 2009. Major findings of the research include: 1) fuelwood demand in Turkey appears to conform to the law of demand with an inverse price-demand relationship; 2) fuelwood demand is notably price-sensitive with relatively high price elasticity; 3) fuelwood does not appear to be a related (complementary or substitute) good with coal and natural gas; and 4) fuelwood in Turkey is likely to be a “normal good” in respect of demand-income relationship. Meanwhile, based upon the proposed model here, fuelwood demand in Turkey may reasonably continue to show a downward trend till a level of 5 million m3 per annum, which is an about 50% reduction from the demand level in 1995. Further research is particularly needed for Turkey in view of the rapidly changing socio-economic profile of rural and urban population, which is being reflected in the demand for energy from wood in forms besides wood in the raw.

Key words: Fuelwood demand, econometric model, regression analysis, demand forecast, Turkish forestry