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Testing For Changes In The Price Elasticity Of Residential Electricity Demand

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  • Stevens, Thomas H.
  • Adams, Gail

Abstract

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.

Suggested Citation

  • Stevens, Thomas H. & Adams, Gail, 1986. "Testing For Changes In The Price Elasticity Of Residential Electricity Demand," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(2), pages 1-7, October.
    • Handle: RePEc:ags:nejare:29056
    DOI: 10.22004/ag.econ.29056
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    References listed on IDEAS

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    1. Lester D. Taylor, 1975. "The Demand for Electricity: A Survey," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 74-110, Spring.
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    Cited by:

    1. Michael Ye & John Zyren & Carol Blumberg & Joanne Shore, 2009. "A Short-Run Crude Oil Price Forecast Model with Ratchet Effect," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(1), pages 37-50, March.
    2. Ghaith, Ahmad F. & Epplin, Francis M., 2017. "Consequences of a carbon tax on household electricity use and cost, carbon emissions, and economics of household solar and wind," Energy Economics, Elsevier, vol. 67(C), pages 159-168.
    3. Tran, Nhan Dang & Sahu, Naresh Chandra, 2023. "Asymmetric price response of industrial electricity demand in India," Utilities Policy, Elsevier, vol. 82(C).

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