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Household electricity demand in Spanish regions. Public policy implications

Author

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  • Desiderio Romero-Jordán

    (Universidad Rey Juan Carlos)

  • Pablo del Río

    (Institute of Public Goods and Policies. Consejo Superior de Investigaciones Científicas (CSIC))

  • Cristina Peñasco

    (Institute of Public Goods and Policies. Consejo Superior de Investigaciones Científicas (CSIC))

Abstract

This paper analyses the determinants of household electricity demand with a panel data, partial adjustment model of Spanish regions in the 1998-2009 period. The results show that electricity demand responds positively and significantly to electricity demand in the previous year, income, temperature range, penetration of electric water heating in households and the number of heating and cooling degree days. It is significantly and negatively related to electricity prices, gas prices, penetration of electric heating in households and whether households have at least one member being 64 years or older. Price elasticities in the preferred model are -0.26 (short-term) and -0.37 (long-term). Income elasticities are 0.31 (short-term) and 0.43 (long-term). Several implications for electricity-efficiency policies are derived from the results of the analysis.

Suggested Citation

  • Desiderio Romero-Jordán & Pablo del Río & Cristina Peñasco, 2014. "Household electricity demand in Spanish regions. Public policy implications," Working Papers 2014/24, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2014-24
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    More about this item

    Keywords

    Electricity demand; residential sector; partial adjustment model;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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