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Estimation of Elasticity Price of Electricity with Incomplete Information

Author

Listed:
  • Xavier Labandeira

    (Rede (Universidade de Vigo) and Economics for Energy)

  • José M. Labeaga

    (Facultad de Ciencias Económicas y Empresariales, UNED)

  • Xiral López-Otero

    (Rede (Universidade de Vigo) and Economics for Energy)

Abstract

The sharp increase in energy prices and growing concern on environmental issues, among other things, are behind the renewed interest in energy demand estimation. However, there is sparce academic literature that takes the 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 incomplete and/or imperfect data available to suppliers. In particular, using real data of expenditure and consumption of electricity, we employ a model of random effects for panel data in order to estimate residential and industrial electricity demand in Spain.

Suggested Citation

  • Xavier Labandeira & José M. Labeaga & Xiral López-Otero, 2010. "Estimation of Elasticity Price of Electricity with Incomplete Information," Working Papers 01-2010, Economics for Energy.
    • Handle: RePEc:efe:wpaper:01-2010
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Electricity demand; micro econometrics; 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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