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Regional impact of changes in disposable income on Spanish electricity demand: A spatial econometric analysis

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  • Blázquez Gomez, Leticia M.
  • Filippini, Massimo
  • Heimsch, Fabian

Abstract

This paper presents an empirical analysis of residential electricity demand considering the existence of spatial effects. This analysis has been performed using aggregate panel data at the province level for 46 Spanish provinces for the period from 2001 to 2010. For this purpose, we estimated a log–log demand equation using a spatial autoregressive model with autoregressive disturbances (SARAR). The purpose of this empirical analysis is to determine the influence of price, income, and spatial spillovers on residential electricity demand in Spain. We are particularly interested in analyzing the impact of household disposable income variation across provinces observed during the economic crisis period 2009–2010. The estimation results show relatively low income elasticity and an inelastic demand to prices. Furthermore, the results show the presence of spatial effects in Spanish residential electricity consumption.

Suggested Citation

  • Blázquez Gomez, Leticia M. & Filippini, Massimo & Heimsch, Fabian, 2013. "Regional impact of changes in disposable income on Spanish electricity demand: A spatial econometric analysis," Energy Economics, Elsevier, vol. 40(S1), pages 58-66.
  • Handle: RePEc:eee:eneeco:v:40:y:2013:i:s1:p:s58-s66
    DOI: 10.1016/j.eneco.2013.09.008
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    Citations

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    Cited by:

    1. Kangjuan Lv & Anyu Yu & Yiwen Bian, 2017. "Regional energy efficiency and its determinants in China during 2001–2010: a slacks-based measure and spatial econometric analysis," Journal of Productivity Analysis, Springer, vol. 47(1), pages 65-81, February.
    2. repec:eee:energy:v:144:y:2018:i:c:p:627-632 is not listed on IDEAS
    3. Daniel de Abreu Pereira Uhr & Júlia Gallego Ziero Uhr, André Luis Squarize Chagas, 2017. "Estimation of price and income elasticities for the Brazilian household electricity demand," Working Papers, Department of Economics 2017_12, University of São Paulo (FEA-USP).
    4. Thomas M. Fullerton & Ileana M. Resendez & Adam G. Walke, 2015. "Upward Sloping Demand for a Normal Good? Residential Electricity in Arkansas," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1065-1072.
    5. repec:eee:energy:v:126:y:2017:i:c:p:124-131 is not listed on IDEAS
    6. Khan, Muhammad Arshad & Abbas, Faisal, 2016. "The dynamics of electricity demand in Pakistan: A panel cointegration analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1159-1178.
    7. Filippini, Massimo & Heimsch, Fabian, 2016. "The regional impact of a CO2 tax on gasoline demand: A spatial econometric approach," Resource and Energy Economics, Elsevier, vol. 46(C), pages 85-100.

    More about this item

    Keywords

    Residential electricity demand; Aggregate panel data; Spatial economic effect; Economic crisis; Spatial econometrics;

    JEL classification:

    • D - Microeconomics
    • D2 - Microeconomics - - Production and Organizations
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

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