Price and income elasticities of electricity demand: Evidence from Jamaica

Alrick Campbell

doi:10.1016/j.eneco.2017.10.040

Price and income elasticities of electricity demand: Evidence from Jamaica

Alrick Campbell

Research output: Contribution to journal › Article

Abstract

Jamaica's electricity sector faces supply-side challenges. Demand-side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions. In this paper, I use the bounds testing approach to cointegration to obtain long-run price elasticity of demand estimates for the period 1970â€“2014. The analysis focuses on aggregate electricity demand and three categories of consumers: residential, commercial, and industrial. The findings suggest that residential and industrial consumers are most responsive to price changes, with long-run price elasticities of demand of âˆ’0.82 and âˆ’0.25, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors.

Original language	English
Pages (from-to)	19-32pp
Journal	Energy Economics
Volume	69
DOIs	https://doi.org/10.1016/j.eneco.2017.10.040
Publication status	Published - 2018

Access to Document

10.1016/j.eneco.2017.10.040

Cite this

@article{992691657582446892ccccda6a590fa2,

title = "Price and income elasticities of electricity demand: Evidence from Jamaica",

abstract = "Jamaica's electricity sector faces supply-side challenges. Demand-side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions. In this paper, I use the bounds testing approach to cointegration to obtain long-run price elasticity of demand estimates for the period 1970{\^a}€“2014. The analysis focuses on aggregate electricity demand and three categories of consumers: residential, commercial, and industrial. The findings suggest that residential and industrial consumers are most responsive to price changes, with long-run price elasticities of demand of {\^a}ˆ{\textquoteright}0.82 and {\^a}ˆ{\textquoteright}0.25, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors.",

author = "Alrick Campbell",

year = "2018",

doi = "10.1016/j.eneco.2017.10.040",

language = "English",

volume = "69",

pages = "19--32pp",

journal = "Energy Economics",

issn = "0140-9883",

publisher = "Elsevier",

}

TY - JOUR

T1 - Price and income elasticities of electricity demand: Evidence from Jamaica

AU - Campbell, Alrick

PY - 2018

Y1 - 2018

N2 - Jamaica's electricity sector faces supply-side challenges. Demand-side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions. In this paper, I use the bounds testing approach to cointegration to obtain long-run price elasticity of demand estimates for the period 1970â€“2014. The analysis focuses on aggregate electricity demand and three categories of consumers: residential, commercial, and industrial. The findings suggest that residential and industrial consumers are most responsive to price changes, with long-run price elasticities of demand of âˆ’0.82 and âˆ’0.25, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors.

AB - Jamaica's electricity sector faces supply-side challenges. Demand-side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions. In this paper, I use the bounds testing approach to cointegration to obtain long-run price elasticity of demand estimates for the period 1970â€“2014. The analysis focuses on aggregate electricity demand and three categories of consumers: residential, commercial, and industrial. The findings suggest that residential and industrial consumers are most responsive to price changes, with long-run price elasticities of demand of âˆ’0.82 and âˆ’0.25, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors.

U2 - 10.1016/j.eneco.2017.10.040

DO - 10.1016/j.eneco.2017.10.040

M3 - Article

SN - 0140-9883

VL - 69

SP - 19

EP - 32

JO - Energy Economics

JF - Energy Economics

ER -

Price and income elasticities of electricity demand: Evidence from Jamaica

Abstract

Access to Document

Fingerprint

Cite this