A new look at residential electricity demand using household expenditure data

Fell, Harrison; Li, Shanjun; Paul, Anthony

doi:10.1016/j.ijindorg.2014.02.001

Cited by 91 publications

(38 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Based on Table 1, it would seem that in recent years sample sizes have grown as a result of longer time series and wider cross sections, and data have been more available at more disaggregated levels such as the state (Paul et al, 2009;Alberini and Filippini, 2010), census block group (Borenstein, 2009), or household (Boogen et al, 2014;Fell et al, 2014;Alberini et 8 al., 2011). In the absence of true panels, Bernard et al (2011) construct a pseudo-panel using four waves of survey data from Quebec that results in only 108 observations.…”

Section: Previous Literaturementioning

confidence: 99%

Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

Miller

Alberini

2016

Energy Policy

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractPrice elasticity estimates of residential electricity demand vary widely across the economic literature. In this paper, we seek to explain these findings using three nationwide datasets -the American Housing Survey, Forms EIA-861, and the Residential Energy Consumption Surveyfrom the U.S. We examine the role of the sample period, level of aggregation, use of panel data, use of instrumental variables, and inclusion of housing characteristics and capital stock. Our findings suggest that price elasticities have remained relatively constant over time. Upon splitting our panel datasets into annual cross sections, we do observe a negative relationship between price elasticities and the price variance. Whether prices are rising or falling appears to have little effect on our estimates. We also find that aggregating our data generally produces lower price elasticity estimates, as does controlling for unit level fixed effects when using panel data. Addressing the endogeneity of price and/or measurement error in price with instrumental variables has a small but noticeable effect on the price elasticities. Finally, controlling for housing characteristics and capital stock produces a lower price elasticity.Keywords: residential electricity demand; price elasticity of demand; household-level data; rebound effect; energy demand forecast.JEL Classification: Q41, D12.

show abstract

Section: Previous Literaturementioning

confidence: 99%

Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

Miller

Alberini

2016

Energy Policy

View full text Add to dashboard Cite

show abstract

“…For example, short-term and longterm elasticities for electricity demand in the US based on a large set of household expenditure data. 74,75 For the US, electricity demand is dependent on income. 76 Short-term and long-term elasticities of electricity and natural gas demand were estimated also for the state of Califormia.…”

mentioning

confidence: 99%

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Heindl,

LLschel

2015

SSRN Journal

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households Andreas Löschel University of Münster February 2015 This paper is also available as: OECD Issue Note -Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households-AbstractThis paper reviews the literature on distributional effects of energy and carbon taxation with focus on microsimulation models. Most studies find that direct energy and carbon taxation tends to be regressive. Regressive effects occur mostly with respect to taxation of electricity or space heating. Taxation of transportation fuels show less regressive, neutral, or even progressive effects. Adequate revenue recycling often allows for neutralisation or full elimination of regressive effects so that energy and carbon tax reforms can be progressive. Some studies find evidence for the existence of a double dividend. There seems to be an efficiency-equity trade-off in revenue recycling, i.e. whether to foster growth or to assist low-income households. While a large number of studies on advanced economies are available, there clearly is a gap with regard to evidence for developing countries. Another gap relates to the lack of documentation on the challenges of incorporating macroeconomic models and long-term modelling perspectives in microsimulation. Both aspects can be of great importance with respect to the design of green growth policies. Thoughtful incorporation of social considerations, including aspects of poverty in modelling approaches could enhance the existing instruments of exante policy assessments since poverty is a tangible concept which is well-known, understandable, and openly observable for citizens and policy makers.

show abstract

“…Moreover, despite a large body of empirical studies, no broad consensus has been reached about the size of the response of residential electricity demand to changing power prices. In fact, price elasticity estimates cover a large range (Fell et al, 2014;Reiss and White, 2005;Shin, 1985;Taylor, 1975), stretching from 0, that is, an entirely price-inelastic demand, to a high elasticity estimate of about -2.5.…”

Section: Findings From the Literaturementioning

confidence: 99%

Switching on Electricity Demand Response: Evidence for German Households

Kussel

2016

SSRN Journal

View full text Add to dashboard Cite

Empirical evidence on the response of German households to electricity price changes is sparse. Using panel data originating from Germany's Residential Energy Consumption Survey (GRECS), we fill this void by employing an instrumental variable approach to cope with the endogeneity of the consumers' tariff choice. By additionally exploiting our information on the households' knowledge about power prices, we also employ an Endogenous Switching Regression Model to estimate price elasticities for two groups of households, finding that only those households that are informed about prices are sensitive to price changes, whereas the electricity demand of uninformed households is entirely price-inelastic.

show abstract

A new look at residential electricity demand using household expenditure data

Cited by 91 publications

References 20 publications

Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data

Social Implications of Green Growth Policies from the Perspective of Energy Sector Reform and its Impact on Households

Switching on Electricity Demand Response: Evidence for German Households

Contact Info

Product

Resources

About