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Testing for Changes in the Price Elasticity of Residential Electricity Demand

Published online by Cambridge University Press:  10 May 2017

Thomas H. Stevens  and
Gail Adams
Thomas H. Stevens
Affiliation:
University of Massachusetts
Gail Adams
Affiliation:
Smith College
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Abstract

The demand for electricity in the residential sector is estimated to have become less elastic for the recent period of rising real prices as compared to earlier periods of stable or falling real price. Several possible reasons for this are investigated and we conclude that demand appears to be asymmetric with respect to price in both the short and long run. We then examine whether or not this is an important factor for forecast accuracy and public policy.

Type
Articles
Information
Northeastern Journal of Agricultural and Resource Economics , Volume 15 , Issue 2 , October 1986 , pp. 123 - 129
Copyright
Copyright © 1986 Northeastern Agricultural and Resource Economics Association 

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