The Demand for Electricity: A Survey
Volume: Volume 6, No. 1
Issue: Spring 1975
Pages: pp. 74-110
Authors: Lester D. Taylor
Title: The Demand for Electricity: A Survey
Abstract: This paper presents a survey and critique of the econometric literature on the demand for electricity. Most of the focus is on residential demand, but the few studies analyzing commercial and industrial demand are also reviewed. Special attention is given to the singular features of electricity demand, the fact that electricity is purchased according to multipart decreasing block tariffs, the need to distinguish between demand in the short run and demand in the long run, etc. In particular it is noted that proper modeling of decreasing block tariffs requires inclusion of both a marginal and average price as predictors in the demand function. The paper concludes with some suggestions for future research.
JEL Classification
Consumer Economics Expenditure Patterns and Consumption of Specific Items (9212)
Regulation of Public Utilities (6130)
Industry Studies Electrical, Gas, Communication, and Information Services (6352)
Energy (7230)