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Elasticity of electricity demand: Account of tariffs by time-of-use

Author

Listed:
  • Tomskii, S.

    (National Research University Higher School of Economics (HSE University), Saint Petersburg, Russia)

  • Kotljarova, S.

    (National Research University Higher School of Economics (HSE University), Saint Petersburg, Russia)

  • Gubar'kov, G.

    (National Research University Higher School of Economics (HSE University), Saint Petersburg, Russia)

Abstract

This article examines the long-run price elasticity of household electricity demand in Russia, taking into account time-of-use (ToU) tariffs. Using panel data for 65 regions over the period 2016-2021, the analysis estimates price elasticity of demand across different time zones. The main findings indicate that daytime and semipeak consumption exhibit statistically significant negative elasticity, while nighttime and peak consumption show no significant response to price changes. These results do not support strong effectiveness of time-based tariff differentiation, except for daytime and semipeak periods. Similar conclusions were observed in China and other countries, often attributed to ineffective price differentials between tariff periods. Enhancing tariff differentiation, introducing better time segmentation, and implementing more complex pricing systems - such as critical peak pricing or its variants - could lead to more efficient load redistribution within the Russian power system.

Suggested Citation

  • Tomskii, S. & Kotljarova, S. & Gubar'kov, G., 2026. "Elasticity of electricity demand: Account of tariffs by time-of-use," Journal of the New Economic Association, New Economic Association, vol. 71(2), pages 59-78.
    • Handle: RePEc:nea:journl:y:2026:i:71:p:59-78
    DOI: 10.31737/22212264_2026_2_59-78
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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