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Estimation of demand elasticities: A reflection on the issues

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  • Uri, Noel D.

Abstract

This paper focuses on the general nature of demand analysis and the notion of demand elasticity as applied to energy. Examples are drawn from the models used by the Office of Applied Analysis of the Energy Information Administration of the US Department of Energy. In the context of the prevailing economic theory, the issue of whether the models approximate closely enough the requisite conditions to give any substance to the belief that the estimated elasticities are true reflections of the magnitude of the response of the quantity of energy demanded by consumers to variations in price is examined. The conclusions are not particularly encouraging!

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  • Uri, Noel D., 1981. "Estimation of demand elasticities: A reflection on the issues," Applied Energy, Elsevier, vol. 9(4), pages 243-256, December.
    • Handle: RePEc:eee:appene:v:9:y:1981:i:4:p:243-256
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    Cited by:

    1. Javier Bueno & Desiderio Romero-Jordán & Pablo del Río, 2020. "Analysing the Drivers of Electricity Demand in Spain after the Economic Crisis," Energies, MDPI, vol. 13(20), pages 1-18, October.
    2. Jerzy Andruszkiewicz & Józef Lorenc & Agnieszka Weychan, 2019. "Demand Price Elasticity of Residential Electricity Consumers with Zonal Tariff Settlement Based on Their Load Profiles," Energies, MDPI, vol. 12(22), pages 1-22, November.

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