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Estimation of Elasticity Price of Electricity with Incomplete Information

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  • Xavier Labandeira

    ()
    (Rede (Universidade de Vigo) and Economics for Energy)

  • José M. Labeaga

    ()
    (Facultad de Ciencias Económicas y Empresariales, UNED)

  • Xiral López-Otero

    ()
    (Rede (Universidade de Vigo) and Economics for Energy)

Abstract

The sharp increase in energy prices and growing concern on environmental issues, among other things, are behind the renewed interest in energy demand estimation. However, there is sparce academic literature that takes the real situation of energy suppliers into account: high quality but incomplete data. In this paper, we propose a useful and rather simple instrument for estimating electricity demand with incomplete and/or imperfect data available to suppliers. In particular, using real data of expenditure and consumption of electricity, we employ a model of random effects for panel data in order to estimate residential and industrial electricity demand in Spain.

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File URL: http://www.eforenergy.org/docpublicaciones/documentos-de-trabajo/WP01-2010.pdf
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Bibliographic Info

Paper provided by Economics for Energy in its series Working Papers with number 01-2010.

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Length: 29 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:efe:wpaper:01-2010

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Keywords: Electricity demand; micro econometrics; panel data;

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References

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Citations

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Cited by:
  1. Blazquez Leticia & Nina Boogen & Massimo Filippini, 2012. "Residential electricity demand for Spain: new empirical evidence using aggregated data," CEPE Working paper series, CEPE Center for Energy Policy and Economics, ETH Zurich 12-82, CEPE Center for Energy Policy and Economics, ETH Zurich.
  2. Simona Bigerna & Carlo Andrea BOLLINO, 2013. "Hourly Electricity Demand in Italian Market," Quaderni del Dipartimento di Economia, Finanza e Statistica, Università di Perugia, Dipartimento Economia, Finanza e Statistica 121/2013, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  3. Simona Bigerna and Carlo Andrea Bollino, 2014. "Electricity Demand in Wholesale Italian Market," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 3).
  4. Xavier Labandeira & José M. Labeaga & Xiral López-Otero, 2011. "Energy Demand for Heating in Spain: An Empirical Analysis with Policy Purposes," Working Papers, Economics for Energy 06-2011, Economics for Energy.
  5. Desiderio Romero-Jordán & Pablo del Río & Cristina Peñasco, 2014. "Household electricity demand in Spanish regions. Public policy implications," Working Papers 2014/24, Institut d'Economia de Barcelona (IEB).
  6. Blázquez Gomez, Leticia M. & Filippini, Massimo & Heimsch, Fabian, 2013. "Regional impact of changes in disposable income on Spanish electricity demand: A spatial econometric analysis," Energy Economics, Elsevier, Elsevier, vol. 40(S1), pages S58-S66.

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