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Price Elasticity of Electricity Consumption in Japan, 1990 to 2015

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  • Akihiro Otsuka

Abstract

This study examines regional price elasticities in electricity consumption to offer valuable insights for policymaking in electricity demand-side management in Japan. By employing a partial adjustment model and utilizing data from regional electric utilities, the study estimates regional electricity demand functions. The analysis reveals that, within the residential sector, the size of houses plays a significant role in explaining regional variations in price elasticity. Likewise, in the industrial sector, the presence or absence of private power generation facilities in firms significantly influences regional disparities in price elasticity. These findings hold substantial implications for enhancing the cost-effectiveness of electricity consumption regulations and policies. JEL Classification: Q41, C01, R11.

Suggested Citation

  • Akihiro Otsuka, 2024. "Price Elasticity of Electricity Consumption in Japan, 1990 to 2015," SAGE Open, , vol. 14(1), pages 21582440241, February.
    • Handle: RePEc:sae:sagope:v:14:y:2024:i:1:p:21582440241228654
    DOI: 10.1177/21582440241228654
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    Keywords

    electricity consumption; price elasticity; electricity demand function; demand-side electricity management; Japan;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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