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Price and Income Elasticity of Residential Electricity Demand in the State of Bahia: 2004 to 2021

Author

Listed:
  • Lu s Oscar Martins

    (Universidade Federal do Rec ncavo da Bahia, Brazil)

  • F bio Matos Fernandes

    (Universidade Estadual da Bahia, Brazil)

  • Lucas da Silva Almeida

    (Centro Universit rio Maria Milza, Brazil)

  • Ednildo Andrade Torres

    (Universidade Federal da Bahia, Brazil)

  • Armando Hirohumi Tanimoto

    (Instituto Federal de Educa o, Ci ncia e Tecnologia da Bahia, Brazil)

  • Alex lisson Bandeira Santos

    (SENAI - CIMATEC, Brazil)

  • Marcelo Santana Silva

    (Instituto Federal de Educa o, Ci ncia e Tecnologia da Bahia, Brazil)

Abstract

The main objective of this research is to estimate the price and income parameters of the residential electric power demand of Bahia state, Brazil. For this, monthly data from 2004 to 2021 is used. The consumption is analyzed in terms of the electricity price, income, number of residentials, rainfall, average temperature, and residential index price. Regarding climatic variables, despite being important for the study of the electricity sector, especially rainfall, since Brazil depends on water sources, they are rarely used. After verifying that part of the series is non-stationary, it is decided to use the method of Cointegration and Error Correction Mechanism (ECM). This estimator considers the model variables and their lags, reconciling short-run and long-run trends. The results are consistent with the established hypotheses, proving to be inelastic both in the short and long run. The parameters calculated can serve as another source of information, both for the agents responsible for conducting energy planning in the State of Bahia, and for eventual investors in the private sector.

Suggested Citation

  • Lu s Oscar Martins & F bio Matos Fernandes & Lucas da Silva Almeida & Ednildo Andrade Torres & Armando Hirohumi Tanimoto & Alex lisson Bandeira Santos & Marcelo Santana Silva, 2023. "Price and Income Elasticity of Residential Electricity Demand in the State of Bahia: 2004 to 2021," International Journal of Energy Economics and Policy, Econjournals, vol. 13(1), pages 39-44, January.
    • Handle: RePEc:eco:journ2:2023-01-6
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    References listed on IDEAS

    as
    1. Pereira Uhr, Daniel de Abreu & Squarize Chagas, André Luis & Ziero Uhr, Júlia Gallego, 2019. "Estimation of elasticities for electricity demand in Brazilian households and policy implications," Energy Policy, Elsevier, vol. 129(C), pages 69-79.
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    More about this item

    Keywords

    Electricity; Electric demand in the residential sector; Bahia; Cointegration;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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