Elasticities of Electricity Demand in Urban Indian Households
Energy demand, and in particular electricity demand in India has been growing at a very rapid rate over the last decade. Given, current trends in population growth, industrialisation, urbanisation, modernisation and income growth, electricity consumption is expected to increase substantially in the coming decades as well. Tariff reforms could play a potentially important role as a demand side management tool in India. However, the effects of any price revisions on consumption will depend on the price elasticity of demand for electricity. In the past, electricity demand studies for India published in international journals have been based on aggregate macro data at the country or sub-national/ state level. In this paper, price and income elasticities of electricity demand in the residential sector of all urban areas of India are estimated for the first time using disaggregate level survey data for over thirty thousand households. Three electricity demand functions have been estimated using monthly data for the following seasons: winter, monsoon and summer. The results show electricity demand is income and price inelastic in all three seasons, and that household, demographic and geographical variables are important in determining electricity demand, something that is not possible to determine using aggregate macro models alone.
|Date of creation:||Mar 2002|
|Date of revision:|
|Contact details of provider:|| Postal: ETH-CEPE, Zürichbergstrasse 18, 8032 Zürich|
Phone: +41-1-632 06 50
Fax: +41-1-632 16 22
Web page: http://www.cepe.ethz.ch
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jung, Tae Yong, 1993. "Ordered logit model for residential electricity demand in Korea," Energy Economics, Elsevier, vol. 15(3), pages 205-209, July.
- Filippini, Massimo & Wild, Jorg, 2001.
"Regional differences in electricity distribution costs and their consequences for yardstick regulation of access prices,"
Elsevier, vol. 23(4), pages 477-488, July.
- Massimo Filippini & Jörg Wild, 2000. "Regional Differences in Electricity Distribution Costs and their Consequences for Yardstick Regulation of Access Prices," CEPE Working paper series 00-05, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Uri, Noel D., 1979. "Energy demand and interfuel substitution in India," European Economic Review, Elsevier, vol. 12(2), pages 181-190, April.
- Shonali Pachauri, . "A First Step to Constructing Energy Consumption Indicators for India. Interim Report of The Indicator Project," CEPE Working paper series 99-02, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Bose, Ranjan Kumar & Shukla, Megha, 1999. "Elasticities of electricity demand in India," Energy Policy, Elsevier, vol. 27(3), pages 137-146, March.
- Massimo Filippini & Jörg Wild & Michael Kuenzle, 2001. "Scale and cost efficiency in the Swiss electricity distribution industry: evidence from a frontier cost approach," CEPE Working paper series 01-08, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Tiwari, Piyush, 2000. "Architectural, Demographic, and Economic Causes of Electricity Consumption in Bombay," Journal of Policy Modeling, Elsevier, vol. 22(1), pages 81-98, January.
- Halvorsen, Robert, 1975. "Residential Demand for Electric Energy," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 12-18, February.
- Nesbakken, Runa, 1999. "Price sensitivity of residential energy consumption in Norway," Energy Economics, Elsevier, vol. 21(6), pages 493-515, December.
- Andrea Scheller, . "Researchers' Use of Indicators. Interim Report of The Indicator Project," CEPE Working paper series 99-01, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Massimo Filippini & Silvia Banfi, 2002. "Impact of the new Swiss electricity law on the competitiveness of hydropower," CEPE Working paper series 02-12, CEPE Center for Energy Policy and Economics, ETH Zurich.
- Massimo Filippini, 1999. "Swiss residential demand for electricity," Applied Economics Letters, Taylor & Francis Journals, vol. 6(8), pages 533-538.
- Flaig, Gebhard, 1990.
"Household production and the short- and long-run demand for electricity,"
Munich Reprints in Economics
20345, University of Munich, Department of Economics.
- Flaig, Gebhard, 1990. "Household production and the short- and long-run demand for electricity," Energy Economics, Elsevier, vol. 12(2), pages 116-121, April.
When requesting a correction, please mention this item's handle: RePEc:cee:wpcepe:02-16. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlos Ordas)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.