Effects of natural gas supply on macro-economics: comparative analysis

ABSTRACT

Energy is the main inputs of products and services. Energy has strategic role at the micro- and macro-economic scales in the countries. Compared with other fossil energy sources, the natural gas has been the most growing one. This fact suggests that understanding the effects of natural gas utilisation on the economical situation of different countries is an important subject among researchers and policymakers. This research is conducted to analyse the effect of natural gas supply in the economics of five developed, emerging, and developing countries (US, Brazil, Germany and Iran). The countries were selected based on the importance of natural gas in their energy supply. The results show that countries with natural gas sources (Iran and the US) are more gas dependent. The reason for high natural gas dependency in Iran is due to the lack of effective energy legislation. In other countries (Germany, Brazil and Turkey), the level of development is highly related to the natural gas consumption. To sum up, decent natural gas consumption in beneficial sectors can improve countries economic development.

KEYWORDS:

• Macro-economics
• natural gas
• energy supply
• elasticity
• regression

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Beneficial Natural Gas Consumption.

2 US Energy Information Administration.

3 International Energy Agency.

4 International Energy Forum.

5 Organization of the Petroleum Exporting Countries.

6 The Gas Exporting Countries Forum.

7 Model for Analysis of Energy Demand.

8 Long-range Energy Alternatives Planning.

9 National Energy Modeling System.

10 World Energy Model.

11 Total Primary Energy Supply.