Testing For Changes In The Price Elasticity Of Residential Electricity Demand
The demand for electricity in the residential sector is estimated to have become less elastic for the recent period of rising real prices as compared to earlier periods of stable or falling real price. Several possible reasons for this are investigated and we conclude that demand appears to be asymmetric with respect to price in both the short and long run. We then examine whether or not this is an important factor for forecast accuracy and public policy.
Volume (Year): 15 (1986)
Issue (Month): 2 (October)
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