Household production and the short- and long-run demand for electricity

Flaig, Gebhard

doi:10.1016/0140-9883(90)90045-h

Cited by 55 publications

(25 citation statements)

References 12 publications

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“…Within a basic household production model, households purchase inputs on the market such as energy and capital (appliances, electronics, light bulbs, heating and cooling systems) to produce energy services, which appear as arguments in the household's utility function (Flaig, 1990;Filippini and Pachauri, 2004;and Alberini and Filippini, 2011). 7 Within this theoretical framework, it is possible to derive the optimal input demand functions for energy and capital (Flaig, 1990 andFilippini, 2011). Conventional theory assumes perfect knowledge of technical relationships and prices, and results in a situation characterized by overall productive efficiency (Farrell, 1957) in the production of energy services.…”

Section: A Model Of Energy Demandmentioning

confidence: 99%

Transient and Persistent Energy Efficiency in the US Residential Sector: Evidence from Household-level Data

Alberini

Filippini

2015

SSRN Journal

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Section: A Model Of Energy Demandmentioning

confidence: 99%

Transient and Persistent Energy Efficiency in the US Residential Sector: Evidence from Household-level Data

Alberini

Filippini

2015

SSRN Journal

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“…Therefore, electricity consumption in the short run may differ from the long-run equilibrium. 10 For an application of household production theory to electricity demand analysis see Dubin (1985), Flaig (1990) and Filippini (1999). as arguments in the household's utility function. In our specific case, a household combines electricity during the peak and off-peak periods with capital equipment to produce energy services such as heated rooms and hot water.…”

Section: An Electricity Demand By Time-of-use Modelmentioning

confidence: 99%

Short- and long-run time-of-use price elasticities in Swiss residential electricity demand

Filippini

2011

Energy Policy

129

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This paper presents an empirical analysis on the residential demand for electricity by time-ofday. This analysis has been performed using aggregate data at the city level for 22 Swiss cities for the period 2000 to 2006. For this purpose, we estimated two log-log demand equations for peak and off-peak electricity consumption using a static and a dynamic partial adjustment approach. These demand functions were estimated using several econometric approaches for panel data, for example LSDV, RE for static models and LSDV, and corrected LSDV estimators for dynamic models. The attempt of this empirical analysis has been to highlight some of the characteristics of the Swiss residential electricity demand. The estimated short-run own price elasticities are lower than 1, whereas in the long-run these values, as expected, are higher than 1.The estimated short run as well as long run cross-price elasticities are positive. This result shows that peak and off-peak electricity are substitutes. In this context, time differentiated prices should provide an economic incentive to customers so that they can modify consumption patterns by reducing peak demand and shifting electricity consumption from peak to off-peak periods.JEL: D, D2, Q, Q4, Q5.

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“…We assume that households purchase inputs such as energy and capital (household appliances) and combine them to produce outputs which are the desired energy services such as cooked food, washed clothes or hot water -which appear as arguments in the household's utility function (Muth, 1966;Flaig, 1990). Within this theoretical framework, it is possible to derive the optimal input demand functions for energy and capital (Flaig, 1990;Alberini and Filippini, 2011). Conventional theory assumes perfect knowledge of technical relationships and prices, and results in a situation characterized by overall productive efficiency 6 in the production of energy services.…”

Section: An Econometric Model For Electricity Demandmentioning

confidence: 99%

The Role of Energy and Investment Literacy for Residential Electricity Demand and End-use Efficiency

et al. 2017

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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 AbstractThis paper estimates the level of transient and persistent efficiency in the use of electricity in Swiss households using the newly developed generalized true random effects model (GTREM). An unbalanced panel dataset of 1, 994 Swiss households from 2010 to 2014 collected via a household survey is used to estimate an electricity demand frontier function. We further investigate whether energy and investment literacy have an influence on the household electricity consumption. The results show significant inefficiencies in the use of electricity among Swiss households, both transient (11%) and persistent (22%). We note that the high persistent inefficiency is indicative of structural problems faced by households and systematic behavioral shortcomings in residential electricity consumption. These results indicate a considerable potential for electricity savings and thus reaching the reduction targets defined by the Swiss federal council as part of the Energy Strategy 2050, wherein end-use efficiency improvement is one of the main pillars. The results support a positive role of energy and, in particular, investment literacy in reducing household electricity consumption. Policies targeting an improvement of these attributes could help to improve efficiency in the use of energy within households.

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Household production and the short- and long-run demand for electricity

Cited by 55 publications

References 12 publications

Transient and Persistent Energy Efficiency in the US Residential Sector: Evidence from Household-level Data

Transient and Persistent Energy Efficiency in the US Residential Sector: Evidence from Household-level Data

Short- and long-run time-of-use price elasticities in Swiss residential electricity demand

The Role of Energy and Investment Literacy for Residential Electricity Demand and End-use Efficiency

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