Price and income elasticities of electricity demand: Evidence from Jamaica

Alrick Campbell

    Research output: Contribution to journalArticle


    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 1970–2014. 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 −0.82 and −0.25, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors.
    Original languageEnglish
    Pages (from-to)19-32pp
    JournalEnergy Economics
    Publication statusPublished - 2018


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