The daily price and income elasticity of natural gas demand in Europe

Data from 15 European countries is analysed to provide novel estimates of daily own-price, cross-price and income elasticities natural-gas-demand 2016 2020. The results show that: first, there a strong-seasonal component in the October–February period during which residential-demand has higher share on total demand, gas price not determinant factor for most countries. This seasonal profile makes price-based tools more effective modifying end-consumer behaviours March August when estimated own-price present larger values absolute terms. Second, are positive October February Bulgaria, Luxemburg, Poland, UK, Portugal. first four natural prices below EU-28 average it argued that may reflect disconnection between traded organized markets real perceived by end-customers. For Portugal, who currently carrying out very aggressive policy become coal-free end 2021, coal mainly consumed power sector flexibility back up renewable generation. limited alternatives these services explain why found be complementary. Finally, lockdowns due covid-19 highly impacted confirming time literature “double heating effect”. Our help find policymakers will influence effectively following economic environmental goals.