An engineering-economic approach to estimating the price elasticity of residential electricity demand

1986 ◽  
Vol 8 (2) ◽  
pp. 118-126 ◽  
Author(s):  
E. Kahn ◽  
J. Sathaye ◽  
D. Robbins
Keyword(s):  
Price Elasticity ◽  
Electricity Demand ◽  
Economic Approach ◽  
Residential Electricity

scholarly journals Testing for Changes in the Price Elasticity of Residential Electricity Demand

1986 ◽  
Vol 15 (2) ◽  
pp. 123-129 ◽  
Author(s):  
Thomas H. Stevens ◽  
Gail Adams
Keyword(s):  
Public Policy ◽  
Price Elasticity ◽  
Forecast Accuracy ◽  
Electricity Demand ◽  
Recent Period ◽  
Residential Sector ◽  
Real Price ◽  
Long Run ◽  
Residential Electricity

The demand for electricity in the residential sector is estimated to have become less elastic for the recent period of rising real prices as compared to earlier periods of stable or falling real price. Several possible reasons for this are investigated and we conclude that demand appears to be asymmetric with respect to price in both the short and long run. We then examine whether or not this is an important factor for forecast accuracy and public policy.

A meta-analysis on the price elasticity and income elasticity of residential electricity demand

2018 ◽  
Vol 201 ◽  
pp. 169-177 ◽  
Author(s):  
Xing Zhu ◽  
Lanlan Li ◽  
Kaile Zhou ◽  
Xiaoling Zhang ◽  
Shanlin Yang
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Meta Analysis ◽  
Electricity Demand ◽  
Residential Electricity

scholarly journals The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation

2020 ◽  
Vol 12 (1) ◽  
pp. 86-114 ◽  
Author(s):  
Tatyana Deryugina ◽  
Alexander MacKay ◽  
Julian Reif
Keyword(s):  
Dynamic Model ◽  
Energy Policy ◽  
Price Elasticity ◽  
Natural Experiment ◽  
Electricity Demand ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Long Run ◽  
Residential Electricity ◽  
Consumption Dynamics

We study the dynamics of residential electricity demand by exploiting a natural experiment that produced large and long-lasting price changes in over 250 Illinois communities. Using a flexible difference-in-difference matching approach, we estimate that the price elasticity of demand grows from − 0.09 in the first six months to − 0.27 two years later. We find similar results with a dynamic model in which usage is a function of past and future prices. Our findings highlight the importance of accounting for consumption dynamics when evaluating energy policy. (JEL L94, L98, Q41, Q48)

Determinants of residential electricity demand: evidence from Japan

2016 ◽  
Vol 10 (4) ◽  
pp. 546-560 ◽  
Author(s):  
Akihiro Otsuka ◽  
Shoji Haruna
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Electricity Demand ◽  
Content Type ◽  
Residential Sector ◽  
Demand Growth ◽  
Electricity Rates ◽  
Residential Electricity ◽  
Using Data ◽  
The Impact

Purpose This paper aims to estimate electricity demand functions in Japan’s residential sector. Design/methodology/approach The authors use a partial adjustment model and empirically analyze regional residential electricity demand by using data on 47 Japanese prefectures. Findings The results reveal that the price elasticity of residential electricity demand during the analytical period (1990-2010) is remarkably different among prefectures, depending on the magnitude of floor space per household. In addition, this study finds that price elasticity is high compared with income elasticity, implying that residential electricity demand changes with rates. Furthermore, an analysis of factors influencing electricity demand in the residential sector shows that increasing electricity demand growth in each region can be attributable mainly to declining electricity rates and increasing number of households. Research limitations/implications These results suggest that monitoring the electricity rates and the number of households is important for forecasting future residential electricity demand at region. Originality/value The study considers the impact of the number of households on overall electricity demand and identifies other factors contributing to growth in residential electricity demand. The findings can be used to derive projections for future electricity demand.

scholarly journals The Sensitivity of Residential Electricity Demand in Indonesia

2018 ◽  
Vol 7 (2) ◽  
pp. 247-266
Author(s):  
Stranti Nastiti Kusumaningrum
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Electricity Consumption ◽  
Electricity Demand ◽  
Electricity Prices ◽  
Pricing Policy ◽  
Residential Electricity ◽  
The Government ◽  
The Impact ◽  
Quantile Regression Method

Since 2013, the residential electricity price for High VA (Volt-Ampere) households has changed due to changes in pricing policies. This paper analyzes the responsiveness of residential electricity demand to the change in electricity prices and income among two different household groups (Low VA and High VA) in 2011 and 2014. Using an electricity consumption model and the Quantile Regression method, the results show that residential electricity demand is price and income inelastic. Income elasticity is lower than price elasticity. Furthermore, the effects on price elasticity also found in the Low VA group, whose rate remained stable. At the same time, evidence proves the impact of the change in pricing policy on income elasticity remains unclear. This result implies that the government has to be more careful in regulating electricity prices for the low VA group, while maintaining economic stability.DOI: 10.15408/sjie.v7i2.6048

scholarly journals Simultaneous activities in the household and residential electricity demand in Spain

2016 ◽  
Vol 28 (1) ◽  
pp. 175-199 ◽  
Author(s):  
Jacopo Torriti ◽  
Isabel Santiago
Keyword(s):  
Survey Data ◽  
Time Use ◽  
Electricity Demand ◽  
Low Carbon ◽  
Policy Studies ◽  
Time Use Survey ◽  
Residential Electricity ◽  
Spanish Time Use Survey ◽  
Time Use Surveys ◽  
Research And Policy

Recent research and policy studies on the low-carbon future highlight the importance of flexible electricity demand. This might be problematic particularly for residential electricity demand, which is related to simultaneous consumers’ practices in the household. This paper analyses issues of simultaneity in residential electricity demand in Spain. It makes use of the 2011 Spanish Time Use Survey data with comparisons from the previous Spanish Time Use Survey and the Harmonised European Time Use Surveys. Findings show that media activities are associated with the highest levels of continuity and simultaneity, particularly in the early and late parts of the evening during weekdays.

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