The paper reports a method of estimating aggregate residential electricity demand elasticities with respect to price and household income. Short-run models of electricity use and linear probability models of equipment ownership are developed using household data. These are incorporated in a model that simulates the development of the stock of dwellings and electricity-using equipment through time to derive short and long-run price and income elasticities. Results for a wide range of equipment types are presented. Test results reveal the influence of dwelling stock dynamics on long-run aggregate elasticities that have not been reported in other studies.
ArchibaldR.B.FinifterD.H.MoodyC.E. (1982). “Seasonal Variation in Residential Electricity Demand: Evidence from Survey Data.” Applied Economics. 14(1): pp. 167-181.
2.
BarnesR.GillinghamR.HagemannR. (1981). “The Short-Run Residential Demand for Electricity.” Review of Economics and Statistics. 63(4): pp.541-551.
3.
BohiD.R. (1981). Analysing Demand Behavior: A Study of Energy Elasticities. Baltimore: Johns Hopkins University Press.
4.
BohiD.R.ZimmermanM.B. (1984). “An Update on Econometric Studies of Energy Demand Behavior.” Annual Review of Energy9: pp. 105-154.
5.
CowingT.G.McFaddenD.L. (1984). Microeconomic Modeling and Policy Analysis. Orlando: Academic Press.
6.
DubinJ. A. (1985). Consumer Durable Choice and the Demand for Electricity. Amsterdam: North-Holland.
7.
DubinJ. A.McFaddenD.L. (1984). “An Econometric Analysis of Residential Electric Appliance Holdings and Consumption.” Econometrica. 52(2): pp. 345-362.
8.
GoettA.McFaddenD. (1982). Residential End-Use Energy Planning System (REEPS). Electric Power Research Institute(EA-2512).
9.
GoettA. (1984). “Household Appliance Choice: Revision of REEPS Behavioral Models.” Electric Power Research Institute (EA-3409).
10.
HewlettJ.G. (1977). “Changing Patterns of Households’ Consumption of Energy Commodities.” Proceedings of the American Statistical Association. (Business and Economic Statistics Section): pp. 99-108.
11.
HirstE.CarneyJ. (1978). “The ORNL Engineering-Economic Model of Residential Energy Use.” Oak Ridge National Laboratory (CON-24).
12.
LeeT.C.JudgeG.G.ZellnerA. (1977). Estimating the Parameters of the Markov Probability Model from Aggregate Time Series Data. 2nd ed. Amsterdam: North-Holland.
13.
McFaddenD.L.PuigC.KirshnerD. (1977). “Determinants of the Long-Run Demand for Electricity.” Proceedings of the American Statistical Association. (Business and Economic Statistics Section): pp. 109-119.
14.
PartiM.PartiC. (1980). “The Total and Appliance Specific Conditional Demand for Electricity in the Household Sector.” The Bell Journal of Economics. 11(1): pp.309-321.
15.
RavindranA. (1982). “A Computer Routine for Solving Quadratic and Linear Programming Problems.” Communications of the Association for Computing Machines.15: pp. 818-820.
16.
ShinJ.S. (1985). “Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand.” The Review of Economics and Statistics67(4): pp. 591-598.
17.
TaylorL.D. (1975). “The Demand for Electricity: A Survey.” The Bell Journal of Economics and Management Science. 6(1): pp. 74-110.
