LAUSR.org creates dashboard-style pages of related content for over 1.5 million academic articles. Sign Up to like articles & get recommendations!

Electricity demand response to price changes: The Portuguese case taking into account income differences

Photo from wikipedia

Abstract In this paper we study the behavior of electricity use in Portuguese households using microdata from five independent surveys. Our sample covers the period from 1989 to 2010, which… Click to show full abstract

Abstract In this paper we study the behavior of electricity use in Portuguese households using microdata from five independent surveys. Our sample covers the period from 1989 to 2010, which was characterized by major changes in the country. We adopt the pseudo-panel methodology creating 350 cohorts based on the size of the household, the type of location (rural or urban), the region, and the income quintile. Our results show relatively high medium/long-run own price elasticities indicating that an increase in the electricity price due to, for instance, policy intervention would, in fact, decrease electricity use. Cross price elasticities indicate that electricity and gas are substitutes. Additionally, the income quintiles analysis shows significant differences in the elasticities depending on the income group. Hence, political interventions in the electricity sector may have important redistributive effects.

Keywords: response price; price; electricity demand; demand response; income

Journal Title: Energy Economics
Year Published: 2017

Link to full text (if available)


Share on Social Media:                               Sign Up to like & get
recommendations!

Related content

More Information              News              Social Media              Video              Recommended



                Click one of the above tabs to view related content.