Carter, Adrian and Craigwell, Roland and Moore, Winston (2011): Price Reform and Household Demand for Electricity. Forthcoming in:
Download (208kB) | Preview
This paper uses an estimated model of residential electricity demand to examine the impact of proposed tariff changes on a representative sample of 130 Barbadian households. The estimated equation results suggest that the price elasticities of demand for particular appliances varied significantly, with households that utilize solar water heating being more price elastic than households that utilize air conditioning and electric water heating electric heating. The income effects were, however, statistically insignificant, as they may have been captured by choices of appliances rather than utilisation. The estimated model results were then employed to examine the effect of a proposed change in the tariff structure for electricity in Barbados. The simulated results seem to indicate that changes in the electricity rate structure are likely to have very little impact on households demand for electricity. However, changes in consumption patterns could occur within upper consumption and upper income households.
|Item Type:||MPRA Paper|
|Original Title:||Price Reform and Household Demand for Electricity|
|Keywords:||Electricity demand; Heckman estimator; Developing country|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O54 - Latin America ; Caribbean
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation > Q24 - Land
C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C24 - Truncated and Censored Models ; Switching Regression Models ; Threshold Regression Models
|Depositing User:||Roland Craigwell|
|Date Deposited:||29 Aug 2012 04:29|
|Last Modified:||24 Oct 2016 05:34|
Cameron, C. A., & Trivedi, P. K. (2005). Microeconometrics: Methods and Applications. New York: Cambridge University Press. Cox, W. (1983). Energy Consumption and Economic Growth: A study of the Barbadian Experience, 1960-1977. Bridgetown: Central Bank of Barbados. Dubin, J. A., & McFadden, D. L. (1984). An Econometric Analysis of Residential Electric Appliance Holdings and Consumption. Econometrica , 52 (2), 345-362. Durant, I. (1991). Residential Demand for Electricity in Barbados, 1966-88. Bridgetown: Central Bank of Barbados. Filippini, M., & Pachauri, S. (2004). Elasticities of Electricity Demand in Urban Indian Households. Energy Policy , 32 (3), 429–436. Halvorsen, R. (1975). Residential Demand for Electric Energy. Review of Economics and Statistics , 57 (1), 12-18. Hawdon, D. (1992). Energy Demand : Evidence and Expectations. London: Surrey University Press. Holtedahl, P., & Joutz, F. (2004). Residential Electricity Demand in Taiwan. Energy Economics , 26 (2), 201–224. Houthakker, H. S. (1951). Some Calculations of Electricity Consumption in Great Britain. Journal of the Royal Statistical Society (A) , 114 (3), 351-371. Liang, Q., Fan, Y., & Wei, Y. (2007). Carbon Taxation Policy in China: How to Protect Energy- and Trade-Intensive Sectors? Journal of Policy Modeling , 29 (2), 311-333. Louw, K., Conradie, B., Howells, M., & Dekenah, M. (2008). Determinants of Electricity Demand for Newly Electrified Low-Income African Households. Energy Policy , 36 (8), 2814-2820. Maddock, R., Castano, E., & Vella, F. (1992). Estimating Electricity Demand: The Cost of Linearising the Budget Constraint. Review of Economics and Statistics , 74 (2), 350-354. Mitchell, T. (2009). A Co-Integration Analysis of the Price and Income Elasticity of Energy Demand. Bridgetown: Central Bank of Barbados. Munley, V. G., Taylor, L. W., & Formby, J. P. (1990). Electricity Demand in Multi-Family, Renter-Occupied Residences. Southern Economic Journal , 57 (1), 178-194. Parti, M., & Parti, C. (1980). The Total and Appliance-Specific Conditional Demand for Electricity in the Household Sector. Bell Journal of Economics , 11 (1), 309-321. Reiss, P. C., & White, M. W. (2005). Household Electricity Demand, Revisited. Review of Economic Studies , 72 (3), 853-883. Tiwari, P. (2000). Architectural, Demographic, and Economic Causes of Electricity Consumption in Bombay. Journal of Policy Modeling , 22 (1), 81-98. Wolde-Rufael, Y. (2005). Energy Demand and Economic Growth: The African Experience. Journal of Policy Modeling , 27 (8), 891-903.