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Electricity demand elasticity and regional effects: Spatial econometric approach

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  • Gaivoronskaia, Elizaveta

    (Novosibirsk State University, Novosibirsk, Russian Federation)

Abstract

This paper presents an empirical analysis of residential electricity demand in the regions of Russia. The purpose of the study is to estimate regional electricity demand considering the existence of spatial effects. Spatial econometrics models are estimated for 78 regions of Russia for the period 2005–2017. The results show that demand depends not only on factors that stressed out in the theory of consumer choice, but also there are spatial spillovers. Furthermore, the results show absence of income elasticity, but rather high price elasticity compared to other countries.

Suggested Citation

  • Gaivoronskaia, Elizaveta, 2020. "Electricity demand elasticity and regional effects: Spatial econometric approach," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 58, pages 76-95.
  • Handle: RePEc:ris:apltrx:0395
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    More about this item

    Keywords

    demand estimation; electricity market; spatial econometrics; Russian regions;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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