Household Electricity Demand, Revisited
AbstractRecent efforts to restructure and partially deregulate electricity markets have renewed interest in understanding how consumers respond to price changes. Several interrelated problems complicate demand analyses of these markets, including nonlinear pricing, heterogeneity in households' price sensitivities, and data aggregation. This paper formulates a model of household electricity demand that addresses these difficulties. We estimate the model using data for a representative sample of California households, and summarize how electricity demand elasticities vary in that state. We then use the model to analyze the electricity consumption and expenditure effects of recent tariff structure changes in California.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8687.
Date of creation: Dec 2001
Date of revision:
Publication status: published as Reiss, Peter C. and Matthew W. White. "Household Electricity Demand, Revisited." Review of Economic Studies 72, 3 (July 2005): 853-83.
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Find related papers by JEL classification:
- C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics
- L5 - Industrial Organization - - Regulation and Industrial Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2001-12-26 (All new papers)
- NEP-ENE-2001-12-26 (Energy Economics)
- NEP-MIC-2001-12-26 (Microeconomics)
- NEP-RES-2001-12-14 (Resource Economics)
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