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Database on estimated elasticity values for use in quantitative analysis of climate and energy topics by agencies and economic modelers

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Institution
Sweden – National Institute of Economic Research (NIER)
Author(s)
Vincent Otto, and Laszlo Sajtos
Published
Topic Area
Data sources
Citation

Sweden—National Institute of Economic Research (2025) Database on estimated elasticity values for use in quantitative analysis of climate and energy topics by agencies and economic modelers, Contribution to ‘Compendium of Practice from a Global Community of Ministries of Finance and Leading Organizations’, Coalition of Finance Ministers for Climate Action

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The Swedish National Institute of Economic Research (NIER) has compiled a database of income and price elasticities for selected energy products (gasoline, diesel, and electricity), for use in quantitative analyses of climate and energy prices.

The elasticities measure the sensitivity of demand for these energy products to changes in income, own-price, and cross-price in the short and long term. The data and guidance for its use are publicly available.

Key Messages

  • When using the elasticities in research, it needs to be considered that the estimates apply to Sweden and comparable countries and are contingent on time, context (e.g., region and income group), and econometric method used.
  • Given the contingency of the estimates, a guidance document to aid users in understanding and applying the elasticities is provided. This has, for instance, been used to guide the Swedish Energy Agency in updating its price elasticities for fuel consumption in the transportation sector.
Keywords
dataelasticitiesmodelspolicy simulation