Functional form and aggregate energy demand elasticities: A nonparametric panel approach for 17 OECD countries

► The log-linear specification is not appropriate functional form for a sample of OECD aggregate energy demand. ► The linear and translog specifications are not also appropriate. ► The price elasticity from a flexible functional form is low compare to the parametric estimates. ► Non-parametric results indicate a linear but slightly varying price elasticity. ► Non-parametric results also indicate a non-linear income elasticity, which varies with income levels.