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Estimation of elasticity price of electricity with incomplete information

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  • Labandeira, Xavier
  • Labeaga, José M.
  • López-Otero, Xiral

Abstract

The sharp increase in energy prices and growing concern for environmental issues, among other things, are behind the renewed interest in energy demand estimation. However, there is scarce academic literature that takes real situation of energy suppliers into account: high quality but incomplete data. In this paper, we propose a useful and rather simple instrument for estimating electricity demand with the incomplete and/or imperfect data currently available to suppliers. In particular, using real expenditure and consumption data on electricity, we employ a model of random effects for panel data to estimate residential and industrial electricity demand in Spain.

Suggested Citation

  • Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2012. "Estimation of elasticity price of electricity with incomplete information," Energy Economics, Elsevier, vol. 34(3), pages 627-633.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:3:p:627-633
    DOI: 10.1016/j.eneco.2011.03.008
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    More about this item

    Keywords

    Electricity demand; Microeconometrics; Panel data;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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