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Deriving Electricity Demand Elasticities from a Simulation Model

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  • M.F. Morss
  • J.L. Small

Abstract

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.

Suggested Citation

  • M.F. Morss & J.L. Small, 1989. "Deriving Electricity Demand Elasticities from a Simulation Model," The Energy Journal, , vol. 10(3), pages 51-76, July.
    • Handle: RePEc:sae:enejou:v:10:y:1989:i:3:p:51-76
    DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No3-4
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    References listed on IDEAS

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    1. Michael Parti & Cynthia Parti, 1980. "The Total and Appliance-Specific Conditional Demand for Electricity in the Household Sector," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 309-321, Spring.
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