Estimating Elasticity for Residential Electricity Demand in China
Residential demand for electricity is estimated for China using a unique household level dataset. Household electricity demand is specified as a function of local electricity price, household income, and a number of social-economic variables at household level. We find that the residential demand fo...
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| Format: | Article |
| Language: | English |
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Wiley
2012-01-01
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| Series: | The Scientific World Journal |
| Online Access: | http://dx.doi.org/10.1100/2012/395629 |
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| author | G. Shi X. Zheng F. Song |
| author_facet | G. Shi X. Zheng F. Song |
| author_sort | G. Shi |
| collection | DOAJ |
| description | Residential demand for electricity is estimated for China using a unique household level dataset. Household electricity demand is specified as a function of local electricity price, household income, and a number of social-economic variables at household level. We find that the residential demand for electricity responds rather sensitively to its own price in China, which implies that there is significant potential to use the price instrument to conserve electricity consumption. Electricity elasticities across different heterogeneous household groups (e.g., rich versus poor and rural versus urban) are also estimated. The results show that the high income group is more price elastic than the low income group, while rural families are more price elastic than urban families. These results have important policy implications for designing an increasing block tariff. |
| format | Article |
| id | doaj-art-ba5253ef11d542a0b8d849262aa4c491 |
| institution | OA Journals |
| issn | 1537-744X |
| language | English |
| publishDate | 2012-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | The Scientific World Journal |
| spelling | doaj-art-ba5253ef11d542a0b8d849262aa4c4912025-08-20T02:19:21ZengWileyThe Scientific World Journal1537-744X2012-01-01201210.1100/2012/395629395629Estimating Elasticity for Residential Electricity Demand in ChinaG. Shi0X. Zheng1F. Song2Department of Techno-Economic Research, Development Research Center of the State Council, Beijing 10010, ChinaSchool of Economics, Renmin University of China, Beijing 100872, ChinaSchool of Economics, Renmin University of China, Beijing 100872, ChinaResidential demand for electricity is estimated for China using a unique household level dataset. Household electricity demand is specified as a function of local electricity price, household income, and a number of social-economic variables at household level. We find that the residential demand for electricity responds rather sensitively to its own price in China, which implies that there is significant potential to use the price instrument to conserve electricity consumption. Electricity elasticities across different heterogeneous household groups (e.g., rich versus poor and rural versus urban) are also estimated. The results show that the high income group is more price elastic than the low income group, while rural families are more price elastic than urban families. These results have important policy implications for designing an increasing block tariff.http://dx.doi.org/10.1100/2012/395629 |
| spellingShingle | G. Shi X. Zheng F. Song Estimating Elasticity for Residential Electricity Demand in China The Scientific World Journal |
| title | Estimating Elasticity for Residential Electricity Demand in China |
| title_full | Estimating Elasticity for Residential Electricity Demand in China |
| title_fullStr | Estimating Elasticity for Residential Electricity Demand in China |
| title_full_unstemmed | Estimating Elasticity for Residential Electricity Demand in China |
| title_short | Estimating Elasticity for Residential Electricity Demand in China |
| title_sort | estimating elasticity for residential electricity demand in china |
| url | http://dx.doi.org/10.1100/2012/395629 |
| work_keys_str_mv | AT gshi estimatingelasticityforresidentialelectricitydemandinchina AT xzheng estimatingelasticityforresidentialelectricitydemandinchina AT fsong estimatingelasticityforresidentialelectricitydemandinchina |