IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2025i66p117-131.html
   My bibliography  Save this article

Price elasticity of wholesale demand for electricity in the regions of the Russian Federation

Author

Listed:
  • Tomskiy, S.

    (HSE University, Moscow, Russia)

Abstract

This paper presents a study of the price elasticity of wholesale electricity demand in three regions of the Russian Federation: the Republic of Kalmykia, the Altai Republic, and the Astrakhan region. Hourly consumption data and hourly equilibrium prices on the day-ahead market for 2022 were used. Due to the endogeneity problem caused by the two-way causality, the two-stage least squares (2SLS) method was applied, where the production of alternative energy sources was chosen as the price instrument. The F-statistics of the first stage of the regressions indicate that the instruments are not weak. The results show that wholesale demand is generally price inelastic, which is consistent with the results obtained in the international literature. The elasticity in modulus in the Republic of Kalmykia turns out to be highly variable - from 0.5 to 1.4. At any time of the day, inelastic demand is observed in the Altai Republic (from 0.25 to 0.5) and the Astrakhan Region (up to 0.1). Moreover, in all the regions considered, night elasticity is higher than day elasticity. This may be a consequence of the policy of two-tariff pricing in the retail market (different tariffs during the day and at night).

Suggested Citation

  • Tomskiy, S., 2025. "Price elasticity of wholesale demand for electricity in the regions of the Russian Federation," Journal of the New Economic Association, New Economic Association, vol. 66(1), pages 117-131.
    • Handle: RePEc:nea:journl:y:2025:i:66:p:117-131
    DOI: 10.31737/22212264_2025_1_117-131
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2025-66-117-131r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2025_1_117-131?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    electricity; price elasticity of demand; demand assessment; 2SLS; regions of Russia;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation

    Statistics

    Access and download statistics

    Corrections

    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:nea:journl:y:2025:i:66:p:117-131. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.