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Estimation of Elasticity Price of Electricity with Incomplete Information

  • Xavier Labandeira


    (Rede (Universidade de Vigo) and Economics for Energy)

  • José M. Labeaga


    (Facultad de Ciencias Económicas y Empresariales, UNED)

  • Xiral López-Otero


    (Rede (Universidade de Vigo) and Economics for Energy)

The sharp increase in energy prices and growing concern on environmental issues, among other things, are behind the renewed interest in energy demand estimation. However, there is sparce academic literature that takes the real situation of energy suppliers into account: high quality but incomplete data. In this paper, we propose a useful and rather simple instrument for estimating electricity demand with incomplete and/or imperfect data available to suppliers. In particular, using real data of expenditure and consumption of electricity, we employ a model of random effects for panel data in order to estimate residential and industrial electricity demand in Spain.

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Paper provided by Economics for Energy in its series Working Papers with number 01-2010.

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Length: 29 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:efe:wpaper:01-2010
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