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Deriving Electricity Demand Elasticities from a Simulation Model

Author

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  • M.F. Morss
  • J.L. Small

Abstract

The paper reports a method of estimating aggregate residential electricity demand elasticities with respect to price and household income. Short-run models of electricity use and linear probability models of equipment ownership are developed using household data. These are incorporated in a model that simulates the development of the stock of dwellings and electricity-using equipment through time to derive short and long-run price and income elasticities. Results for a wide range of equipment types are presented. Test results reveal the influence of dwelling stock dynamics on long-run aggregate elasticities that have not been reported in other studies.

Suggested Citation

  • M.F. Morss & J.L. Small, 1989. "Deriving Electricity Demand Elasticities from a Simulation Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-76.
    • Handle: RePEc:aen:journl:1989v10-03-a04
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    Citations

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    Cited by:

    1. Susanne Bonomo & Massimo Filippini & Peter Zweifel, 1998. "Neue Aufschluesse ueber die Elektrizitaetsnachfrage der schweizerischen Haushalte," SOI - Working Papers 9801, Socioeconomic Institute - University of Zurich.
    2. Nesbakken, Runa, 1999. "Price sensitivity of residential energy consumption in Norway," Energy Economics, Elsevier, vol. 21(6), pages 493-515, December.
    3. A. Bigano & S. Proost & J. Van Rompuy, 2000. "Alternative Environmental Regulation Schemes for the Belgian Power Generation Sector," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(2), pages 121-160, June.
    4. Nilsson, Mats, 2005. "Electric power oligopoly and suspicious minds--a critique of a recently approved merger," Energy Policy, Elsevier, vol. 33(15), pages 2023-2036, October.
    5. Runa Nesbakken, 1998. "Price Sensitivity of Residential Energy Consumption in Norway," Discussion Papers 232, Statistics Norway, Research Department.
    6. Susanne Bonomo & Massimo Filippini & Peter Zweifel, 1998. "Neue Aufschlüsse über die Elektrizitätsnachfrage der schweizerischen Haushalte," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 134(III), pages 415-436, September.
    7. Patricia Iyore Ajayi, 2018. "Urban Household Energy Demand in Southwest Nigeria," African Development Review, African Development Bank, vol. 30(4), pages 410-422, December.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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