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Estimación de la Elasticidad-Precio de Corto Plazo de la Demanda de Electricidad en República Dominicana
[An Estimation of the Short-Run Price Elasticity of Electricity Demand in the Dominican Republic]

Author

Listed:
  • Guzman, Ivan
  • Salazar, Ricardo

Abstract

This paper presents a theoretical model for the optimization of the decision-making process of power purchase of the electric utility companies of the Dominican Republic, taking into account the demand of end-users of the service, the short-term marginal cost of energy in the wholesale power market, and the budgetary constraints of the utility companies. This model was applied to estimate the short-term price elasticity of electricity demand for the three largest electric utility companies of the Dominican Republic, during the period 2007-2016; this evaluation was made using time series analysis techniques. The elasticities estimated were in the range of -0.012 to -0.018. It is also explored if these values undergo intraday variations. The paper closes outlining some welfare implications of the results obtained as well as policy recommendations.

Suggested Citation

  • Guzman, Ivan & Salazar, Ricardo, 2017. "Estimación de la Elasticidad-Precio de Corto Plazo de la Demanda de Electricidad en República Dominicana [An Estimation of the Short-Run Price Elasticity of Electricity Demand in the Dominican Repu," MPRA Paper 92083, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:92083
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Power Markets; Economics of Regulation; Electricity Demand; Electric Utilities;
    All these keywords.

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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