An experiment in own-price elasticity estimation for non-residential electricity demand in the U.S
Author
Abstract
Suggested Citation
DOI: 10.1016/j.jup.2023.101489
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Li, Raymond & Woo, Chi-Keung & Cox, Kevin, 2021. "How price-responsive is residential retail electricity demand in the US?," Energy, Elsevier, vol. 232(C).
- Woo, C.K. & Milstein, I. & Tishler, A. & Zarnikau, J., 2019. "A wholesale electricity market design sans missing money and price manipulation," Energy Policy, Elsevier, vol. 134(C).
- Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017.
"A meta-analysis on the price elasticity of energy demand,"
Energy Policy, Elsevier, vol. 102(C), pages 549-568.
- Xavier Labandeira & José M.aría Labeaga & Xiral López-Otero, 2015. "A meta-analysis on the price elasticity of energy demand," Working Papers 04-2015, Economics for Energy.
- Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009.
"Energy Efficiency Economics and Policy,"
Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 597-620, September.
- Gillingham, Kenneth & Newell, Richard G. & Palmer, Karen, 2009. "Energy Efficiency Economics and Policy," RFF Working Paper Series dp-09-13, Resources for the Future.
- Kenneth Gillingham & Richard G. Newell & Karen Palmer, 2009. "Energy Efficiency Economics and Policy," NBER Working Papers 15031, National Bureau of Economic Research, Inc.
- Wilkerson, Jordan & Larsen, Peter & Barbose, Galen, 2014. "Survey of Western U.S. electric utility resource plans," Energy Policy, Elsevier, vol. 66(C), pages 90-103.
- M. Hashem Pesaran, 2006.
"Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure,"
Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
- M. Hashem Pesaran, 2004. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," CESifo Working Paper Series 1331, CESifo.
- Huntington, Hillard G. & Barrios, James J. & Arora, Vipin, 2019.
"Review of key international demand elasticities for major industrializing economies,"
Energy Policy, Elsevier, vol. 133(C).
- Huntington, Hillard & Barrios, James & Arora, Vipin, 2017. "Review of Key International Demand Elasticities for Major Industrializing Economies," MPRA Paper 87532, University Library of Munich, Germany.
- Huntington, Hillard & Barrios, James & Arora, Vipin, 2017. "Review of Key International Demand Elasticities for Major Industrializing Economies," MPRA Paper 95890, University Library of Munich, Germany, revised Aug 2019.
- Berndt, Ernst R, 1976. "Reconciling Alternative Estimates of the Elasticity of Substitution," The Review of Economics and Statistics, MIT Press, vol. 58(1), pages 59-68, February.
- Woo, Chi-Keung, 1994. "Managing water supply shortage : Interruption vs. pricing," Journal of Public Economics, Elsevier, vol. 54(1), pages 145-160, May.
- Woo, C.K. & Olson, A. & Chen, Y. & Moore, J. & Schlag, N. & Ong, A. & Ho, T., 2017. "Does California's CO2 price affect wholesale electricity prices in the Western U.S.A.?," Energy Policy, Elsevier, vol. 110(C), pages 9-19.
- Brown, D.P. & Tsai, C.H. & Woo, C.K. & Zarnikau, J. & Zhu, S., 2020.
"Residential electricity pricing in Texas's competitive retail market,"
Energy Economics, Elsevier, vol. 92(C).
- Brown, David P. & Tsai, Chen-Hao & Woo, Chi-Keung & Zarnikau, Jay & Zhu, Shuangshuang, 2020. "Residential Electricity Pricing in Texas’s Competitive Retail Market," Working Papers 2020-4, University of Alberta, Department of Economics.
- Badri, Masood A., 1992. "Analysis of demand for electricity in the United States," Energy, Elsevier, vol. 17(7), pages 725-733.
- Miller, Mark & Alberini, Anna, 2016. "Sensitivity of price elasticity of demand to aggregation, unobserved heterogeneity, price trends, and price endogeneity: Evidence from U.S. Data," Energy Policy, Elsevier, vol. 97(C), pages 235-249.
- Newsham, Guy R. & Bowker, Brent G., 2010. "The effect of utility time-varying pricing and load control strategies on residential summer peak electricity use: A review," Energy Policy, Elsevier, vol. 38(7), pages 3289-3296, July.
- Sreedharan, P. & Miller, D. & Price, S. & Woo, C.K., 2012. "Avoided cost estimation and cost-effectiveness of permanent load shifting in California," Applied Energy, Elsevier, vol. 96(C), pages 115-121.
- Li, Raymond & Woo, Chi-Keung & Tishler, Asher & Zarnikau, Jay, 2022. "How price responsive is industrial demand for natural gas in the United States?," Utilities Policy, Elsevier, vol. 74(C).
- Caves, Douglas W & Christensen, Laurits R, 1980. "Global Properties of Flexible Functional Forms," American Economic Review, American Economic Association, vol. 70(3), pages 422-432, June.
- M. Hashem Pesaran, 2007.
"A simple panel unit root test in the presence of cross-section dependence,"
Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
- Pesaran, M.H., 2003. "A Simple Panel Unit Root Test in the Presence of Cross Section Dependence," Cambridge Working Papers in Economics 0346, Faculty of Economics, University of Cambridge.
- Agustin J. Ros, 2017. "An Econometric Assessment of Electricity Demand in the United States Using Utility-specific Panel Data and the Impact of Retail Competition on Prices," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4).
- David P. Brown & Jay Zarnikau & Chi-Keung Woo, 2020.
"Does locational marginal pricing impact generation investment location decisions? An analysis of Texas’s wholesale electricity market,"
Journal of Regulatory Economics, Springer, vol. 58(2), pages 99-140, December.
- Brown, David P. & Zarnikau, Jay & Woo, Chi-Keung, 2020. "Does Locational Marginal Pricing Impact Generation Investment Location Decisions? An Analysis of Texas's Wholesale Electricity Market," Working Papers 2020-1, University of Alberta, Department of Economics.
- Brantley Liddle, 2017. "Accounting for Nonlinearity, Asymmetry, Heterogeneity, and Cross-Sectional Dependence in Energy Modeling: US State-Level Panel Analysis," Economies, MDPI, vol. 5(3), pages 1-11, August.
- Cao, K.H. & Qi, H.S. & Tsai, C.H. & Woo, C.K. & Zarnikau, J., 2021. "Energy trading efficiency in the US Midcontinent electricity markets," Applied Energy, Elsevier, vol. 302(C).
- Pesaran, M. Hashem & Smith, Ron, 1995.
"Estimating long-run relationships from dynamic heterogeneous panels,"
Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
- Pesaran, M.H. & Smith, R., 1992. "Estimating Long-Run Relationships From Dynamic Heterogeneous Panels," Cambridge Working Papers in Economics 9215, Faculty of Economics, University of Cambridge.
- Lin, Winston T. & Chen, Yueh H. & Chatov, Robert, 1987. "The demand for natural gas, electricity and heating oil in the United States," Resources and Energy, Elsevier, vol. 9(3), pages 233-258, October.
- Chudik, Alexander & Pesaran, M. Hashem, 2015.
"Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors,"
Journal of Econometrics, Elsevier, vol. 188(2), pages 393-420.
- Alexander Chudik & M. Hashem Pesaran, 2013. "Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors," CESifo Working Paper Series 4232, CESifo.
- Alexander Chudik & M. Hashem Pesaran, 2013. "Common correlated effects estimation of heterogeneous dynamic panel data models with weakly exogenous regressors," Globalization Institute Working Papers 146, Federal Reserve Bank of Dallas.
- Pesaran, Hashem & Chudik, Alexander, 2013. "Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors," Cambridge Working Papers in Economics 1317, Faculty of Economics, University of Cambridge.
- Jeffrey M Wooldridge, 2010.
"Econometric Analysis of Cross Section and Panel Data,"
MIT Press Books,
The MIT Press,
edition 2, volume 1, number 0262232588, December.
- Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
- Katrina Jessoe & David Rapson, 2014.
"Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use,"
American Economic Review, American Economic Association, vol. 104(4), pages 1417-1438, April.
- Katrina Jessoe & David Rapson, 2012. "Knowledge is (Less) Power: Experimental Evidence from Residential Energy Use," NBER Working Papers 18344, National Bureau of Economic Research, Inc.
- David P. Byrne, Andrea La Nauze, and Leslie A. Martin, 2021.
"An Experimental Study of Monthly Electricity Demand (In)elasticity,"
The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 205-222.
- David P. Byrne & Andrea La Nauze & Leslie A. Martin, 2021. "An Experimental Study of Monthly Electricity Demand (In)elasticity," The Energy Journal, , vol. 42(2), pages 205-222, March.
- Sreedharan, P. & Farbes, J. & Cutter, E. & Woo, C.K. & Wang, J., 2016. "Microgrid and renewable generation integration: University of California, San Diego," Applied Energy, Elsevier, vol. 169(C), pages 709-720.
- Derya Eryilmaz, Timothy M. Smith, and Frances R. Homans, 2017. "Price Responsiveness in Electricity Markets: Implications for Demand Response in the Midwest," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
- Keighton R. Allen & Thomas M. Fullerton, 2019. "Metropolitan Evidence Regarding Small Commercial and Industrial Electricity Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 1-11.
- Diewert, W E, 1971. "An Application of the Shephard Duality Theorem: A Generalized Leontief Production Function," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 481-507, May-June.
- Faruqui, Ahmad & Malko, J.Robert, 1983. "The residential demand for electricity by time-of-use: A survey of twelve experiments with peak load pricing," Energy, Elsevier, vol. 8(10), pages 781-795.
- Brian P. Macfie, 2008. "The Impact Of Utility Deregulation In Arizona," Contemporary Economic Policy, Western Economic Association International, vol. 26(2), pages 335-350, April.
- Dahl, Carol A., 1993. "A survey of energy demand elasticities in support of the development of the NEMS," MPRA Paper 13962, University Library of Munich, Germany.
- Aigner, Dennis J., 1984. "The welfare econometrics of peak-load pricing for electricity : Editor's Introduction," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 1-15.
- Alagappan, L. & Orans, R. & Woo, C.K., 2011. "What drives renewable energy development?," Energy Policy, Elsevier, vol. 39(9), pages 5099-5104, September.
- Milstein, Irena & Tishler, Asher & Woo, Chi-Keung, 2022. "Wholesale electricity market economics of solar generation in Israel," Utilities Policy, Elsevier, vol. 79(C).
- Frank T. Denton & Dean C. Mountain & Byron G. Spencer, 2003. "Energy Demand with Declining Rate Schedules: An Econometric Model for the U.S. Commercial Sector," Land Economics, University of Wisconsin Press, vol. 79(1), pages 86-105.
- Suganthi, L. & Samuel, Anand A., 2012. "Energy models for demand forecasting—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1223-1240.
- Paul J. Burke and Ashani Abayasekara, 2018.
"The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis,"
The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
- Paul J. Burke & Ashani Abayasekara, 2018. "The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis," The Energy Journal, , vol. 39(2), pages 123-146, March.
- Paul J. Burke & Ashani Abayasekara, 2017. "The price elasticity of electricity demand in the United States: A three-dimensional analysis," CAMA Working Papers 2017-50, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
- Woo, C.K. & Li, R. & Shiu, A. & Horowitz, I., 2013. "Residential winter kWh responsiveness under optional time-varying pricing in British Columbia," Applied Energy, Elsevier, vol. 108(C), pages 288-297.
- Beierlein, James G & Dunn, James W & McConnon, James C, Jr, 1981. "The Demand for Electricity and Natural Gas in the Northeastern United States," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 403-408, August.
- Woo, C.K. & Zarnikau, J., 2019. "Renewable energy's vanishing premium in Texas's retail electricity pricing plans," Energy Policy, Elsevier, vol. 132(C), pages 764-770.
- Woo, C.K. & Liu, Y. & Zarnikau, J. & Shiu, A. & Luo, X. & Kahrl, F., 2018. "Price elasticities of retail energy demands in the United States: New evidence from a panel of monthly data for 2001–2016," Applied Energy, Elsevier, vol. 222(C), pages 460-474.
- Berndt, Ernst R & Wood, David O, 1979. "Engineering and Econometric Interpretations of Energy-Capital Complementarity," American Economic Review, American Economic Association, vol. 69(3), pages 342-354, June.
- Asher Tishler & Stan Lipovetsky, 1997. "The Flexible Ces-Gbc Family Of Cost Functions: Derivation And Application," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 638-646, November.
- Lusztig, C. & Feldberg, P. & Orans, R. & Olson, A., 2006. "A survey of transmission tariffs in North America," Energy, Elsevier, vol. 31(6), pages 1017-1039.
- Newell, Richard G. & Pizer, William A., 2008. "Carbon mitigation costs for the commercial building sector: Discrete-continuous choice analysis of multifuel energy demand," Resource and Energy Economics, Elsevier, vol. 30(4), pages 527-539, December.
- Hobbs, Benjamin F., 1995. "Optimization methods for electric utility resource planning," European Journal of Operational Research, Elsevier, vol. 83(1), pages 1-20, May.
- Kamerschen, David R. & Porter, David V., 2004. "The demand for residential, industrial and total electricity, 1973-1998," Energy Economics, Elsevier, vol. 26(1), pages 87-100, January.
- Sala-i-Martin, Xavier, 1997.
"I Just Ran Two Million Regressions,"
American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
- Xavier X. Sala-i-Martin, 1997. "I Just Ran Four Million Regressions," NBER Working Papers 6252, National Bureau of Economic Research, Inc.
- Feehan, James P., 2018. "The long-run price elasticity of residential demand for electricity: Results from a natural experiment," Utilities Policy, Elsevier, vol. 51(C), pages 12-17.
- Ahmad Faruqui & Sanem Sergici, 2010. "Household response to dynamic pricing of electricity: a survey of 15 experiments," Journal of Regulatory Economics, Springer, vol. 38(2), pages 193-225, October.
- Gautam, Tej K. & Paudel, Krishna P., 2018. "Estimating sectoral demands for electricity using the pooled mean group method," Applied Energy, Elsevier, vol. 231(C), pages 54-67.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- H. Qi & C. K. Woo & K. H. Cao & J. Zarnikau & R. Li, 2024. "Price responsiveness of solar and wind capacity demands," Post-Print hal-04597188, HAL.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Woo, C.K. & Liu, Y. & Zarnikau, J. & Shiu, A. & Luo, X. & Kahrl, F., 2018. "Price elasticities of retail energy demands in the United States: New evidence from a panel of monthly data for 2001–2016," Applied Energy, Elsevier, vol. 222(C), pages 460-474.
- Li, Raymond & Woo, Chi-Keung & Tishler, Asher & Zarnikau, Jay, 2022. "How price responsive is industrial demand for natural gas in the United States?," Utilities Policy, Elsevier, vol. 74(C).
- Li, Raymond & Woo, Chi-Keung & Tishler, Asher & Zarnikau, Jay, 2022. "Price responsiveness of commercial demand for natural gas in the US," Energy, Elsevier, vol. 256(C).
- Raymond Li & Chi-Keung Woo & Asher Tishler & Jay Zarnikau, 2022. "Price Responsiveness of Residential Demand for Natural Gas in the United States," Energies, MDPI, vol. 15(12), pages 1-22, June.
- Li, Raymond & Woo, Chi-Keung & Cox, Kevin, 2021. "How price-responsive is residential retail electricity demand in the US?," Energy, Elsevier, vol. 232(C).
- Woo, C.K. & Shiu, A. & Liu, Y. & Luo, X. & Zarnikau, J., 2018. "Consumption effects of an electricity decarbonization policy: Hong Kong," Energy, Elsevier, vol. 144(C), pages 887-902.
- Cao, K.H. & Qi, H.S. & Tsai, C.H. & Woo, C.K. & Zarnikau, J., 2021. "Energy trading efficiency in the US Midcontinent electricity markets," Applied Energy, Elsevier, vol. 302(C).
- Woo, C.K. & Milstein, I. & Tishler, A. & Zarnikau, J., 2019. "A wholesale electricity market design sans missing money and price manipulation," Energy Policy, Elsevier, vol. 134(C).
- Liddle, Brantley & Huntington, Hillard, 2021. "How prices, income, and weather shape household electricity demand in high-income and middle-income countries," Energy Economics, Elsevier, vol. 95(C).
- Woo, C.K. & Tishler, A. & Zarnikau, J. & Chen, Y., 2021. "Average residential outage cost estimates for the lower 48 states in the US," Energy Economics, Elsevier, vol. 98(C).
- Javier Bueno & Desiderio Romero-Jordán & Pablo del Río, 2020. "Analysing the Drivers of Electricity Demand in Spain after the Economic Crisis," Energies, MDPI, vol. 13(20), pages 1-18, October.
- Gautam, Tej K. & Paudel, Krishna P., 2018. "Estimating sectoral demands for electricity using the pooled mean group method," Applied Energy, Elsevier, vol. 231(C), pages 54-67.
- Brantley Liddle & Fakhri Hasanov, 2022. "Industry electricity price and output elasticities for high-income and middle-income countries," Empirical Economics, Springer, vol. 62(3), pages 1293-1319, March.
- Liddle, Brantley & Huntington, Hillard, 2020. "‘On the Road Again’: A 118 country panel analysis of gasoline and diesel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 142(C), pages 151-167.
- H. Qi & C. K. Woo & K. H. Cao & J. Zarnikau & R. Li, 2024. "Price responsiveness of solar and wind capacity demands," Post-Print hal-04597188, HAL.
- Gautam, Tej K. & Paudel, Krishna P., 2018. "The demand for natural gas in the Northeastern United States," Energy, Elsevier, vol. 158(C), pages 890-898.
- Woo, C.K. & Sreedharan, P. & Hargreaves, J. & Kahrl, F. & Wang, J. & Horowitz, I., 2014. "A review of electricity product differentiation," Applied Energy, Elsevier, vol. 114(C), pages 262-272.
- Jerzy Andruszkiewicz & Józef Lorenc & Agnieszka Weychan, 2019. "Demand Price Elasticity of Residential Electricity Consumers with Zonal Tariff Settlement Based on Their Load Profiles," Energies, MDPI, vol. 12(22), pages 1-22, November.
- Jing Liang & Yueming Qiu & Bo Xing, 2021. "Social Versus Private Benefits of Energy Efficiency Under Time-of-Use and Increasing Block Pricing," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 78(1), pages 43-75, January.
- Paul J. Burke & Ashani Abayasekara, 2018.
"The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis,"
The Energy Journal, , vol. 39(2), pages 123-146, March.
- Paul J. Burke and Ashani Abayasekara, 2018. "The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
- Paul J. Burke & Ashani Abayasekara, 2017. "The price elasticity of electricity demand in the United States: A three-dimensional analysis," CAMA Working Papers 2017-50, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
More about this item
Keywords
Price elasticity; Estimation experiment; Non-residential electricity demand; U.S;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:juipol:v:81:y:2023:i:c:s0957178723000012. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.