IDEAS home Printed from https://ideas.repec.org/a/mgs/ijmsba/v1y2015i6p81-87.html

An Assessment of Energy Consumption and Price Responsiveness: Evidence from Dominican Republic

Author

Listed:
  • Jose Antonio Hernandez

    (School of Economics, Wuhan University of Technology, Wuhan, P.R. China)

  • Camilo Koch

    (School of Management, Wuhan University of Technology, Wuhan, P.R. China)

Abstract

Electricity has a high impact in the activities and sectors of any economy. A considerable amount of studies relates the importance of electricity to economic growth of nations. Dominican Republic, though, has been in a process of energy reform, has not yet developed a stable electric delivering. This study is firstly conducted to ensure an overview of the electricity sector of Dominican Republic, describing the energy mix, national electricity situation, and main concerns on the sector reform that have been in process including other Latin American countries. Secondly, the paper aims to determine the elasticity of demand on energy generation sector through log linear regression method; analyzing the variation of price and quantity of demand interaction. Related researches concerning elasticity of demand in other countries such as Australia, Israel, China and United States, shows close similarity to our result, where elasticity tends to be inelastic (0.57) but not perfectly inelastic to variation on price. While the energy market structures by sectors may be complex, customers’ response to pricing signals can promote efficient investment in the long-run term, help mitigate short-run market power by generators and transmission owners, reduce price spikes, low price volatility, and consequently support price mechanism.

Suggested Citation

  • Jose Antonio Hernandez & Camilo Koch, 2015. "An Assessment of Energy Consumption and Price Responsiveness: Evidence from Dominican Republic," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(6), pages 81-87, May.
    • Handle: RePEc:mgs:ijmsba:v:1:y:2015:i:6:p:81-87
    DOI: 10.18775/ijmsba.1849-5664-5419.2014.16.1007
    as

    Download full text from publisher

    File URL: http://researchleap.com/wp-content/uploads/2015/06/7.-An-Assessment-of-Energy-Consumption-and-Price-Responsiveness-Evidence-from-Dominican-Republic.pdf
    Download Restriction: no
    File URL: http://researchleap.com/an-assessment-of-energy-consumption-and-price-responsiveness-evidence-from-dominican-republic/
    Download Restriction: no
    File URL: https://libkey.io/10.18775/ijmsba.1849-5664-5419.2014.16.1007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fan, Shu & Hyndman, Rob J., 2011. "The price elasticity of electricity demand in South Australia," Energy Policy, Elsevier, vol. 39(6), pages 3709-3719, June.
    2. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151, April.
    3. Jamil, Faisal & Ahmad, Eatzaz, 2011. "Income and price elasticities of electricity demand: Aggregate and sector-wise analyses," Energy Policy, Elsevier, vol. 39(9), pages 5519-5527, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nnaemeka Vincent Emodi & Taha Chaiechi & ABM Rabiul Alam Beg, 2018. "The impact of climate change on electricity demand in Australia," Energy & Environment, , vol. 29(7), pages 1263-1297, November.
    2. Adom, Philip Kofi, 2017. "The long-run price sensitivity dynamics of industrial and residential electricity demand: The impact of deregulating electricity prices," Energy Economics, Elsevier, vol. 62(C), pages 43-60.
    3. D.P.S. Chandrakumara, 2015. "Prospects of Saving Mobilization in Underserved Settlements of the City of Colombo," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 1(10), pages 19-33, September.
    4. Heshmati, Almas, 2012. "Survey of Models on Demand, Customer Base-Line and Demand Response and Their Relationships in the Power Market," IZA Discussion Papers 6637, IZA Network @ LISER.
    5. Almas Heshmati, 2014. "Demand, Customer Base-Line And Demand Response In The Electricity Market: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 862-888, December.
    6. Inha Oh & Yeongjun Yeo & Jeong-Dong Lee, 2015. "Efficiency versus Equality: Comparing Design Options for Indirect Emissions Accounting in the Korean Emissions Trading Scheme," Sustainability, MDPI, vol. 7(11), pages 1-21, November.
    7. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Short- and long-run elasticities of electricity demand in the Korean service sector," Energy Policy, Elsevier, vol. 67(C), pages 517-521.
    8. Adewuyi, Adeolu O., 2016. "Determinants of import demand for non-renewable energy (petroleum) products: Empirical evidence from Nigeria," Energy Policy, Elsevier, vol. 95(C), pages 73-93.
    9. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    10. Russell S. Sobel & Nabamita Dutta & Sanjukta Roy, 2010. "Beyond Borders: Is Media Freedom Contagious?," Kyklos, Wiley Blackwell, vol. 63(1), pages 133-143, February.
    11. Azevedo, I. & Leal, V., 2021. "A new model for ex-post quantification of the effects of local actions for climate change mitigation," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    12. Aleksynska, Mariya & Tritah, Ahmed, 2013. "Occupation–education mismatch of immigrant workers in Europe: Context and policies," Economics of Education Review, Elsevier, vol. 36(C), pages 229-244.
    13. Dorothée Charlier & Sondès Kahouli, 2019. "From Residential Energy Demand to Fuel Poverty: Income-induced Non-linearities in the Reactions of Households to Energy Price Fluctuations," The Energy Journal, , vol. 40(2), pages 101-138, March.
    14. Markus Froelich & Jean Bourdon & Katharina Michaelowa, 2007. "Teacher Shortages, Teacher Contracts and their Impact on Education in Africa," University of St. Gallen Department of Economics working paper series 2007 2007-20, Department of Economics, University of St. Gallen.
    15. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    16. Fais, Birgit & Blesl, Markus & Fahl, Ulrich & Voß, Alfred, 2014. "Comparing different support schemes for renewable electricity in the scope of an energy systems analysis," Applied Energy, Elsevier, vol. 131(C), pages 479-489.
    17. Lefèvre, Nicolas, 2010. "Measuring the energy security implications of fossil fuel resource concentration," Energy Policy, Elsevier, vol. 38(4), pages 1635-1644, April.
    18. Aneel Karnani, 2009. "The Bottom of the Pyramid Strategy for Reducing Poverty: A Failed Promise," Working Papers 80, United Nations, Department of Economics and Social Affairs.
    19. Gonzalez-Martinez, Ana Citlalic & Schandl, Heinz, 2008. "The biophysical perspective of a middle income economy: Material flows in Mexico," Ecological Economics, Elsevier, vol. 68(1-2), pages 317-327, December.
    20. Klomp, Jeroen & de Haan, Jakob, 2010. "Do central bank law reforms affect the term in office of central bank governors?," Economics Letters, Elsevier, vol. 106(3), pages 219-222, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mgs:ijmsba:v:1:y:2015:i:6:p:81-87. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bojan Obrenovic (email available below). General contact details of provider: https://researchleap.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.