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

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10.1016/j.eneco.2017.10.040

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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.",

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year = "2018",

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

language = "English",

volume = "69",

pages = "19--32pp",

journal = "Energy Economics",

issn = "0140-9883",

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PY - 2018

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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.

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DO - 10.1016/j.eneco.2017.10.040

M3 - Article

VL - 69

SP - 19

EP - 32

JO - Energy Economics

JF - Energy Economics

SN - 0140-9883

ER -

Price and income elasticities of electricity demand: Evidence from Jamaica

Abstract

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