Munich Personal RePEc Archive

Estimación de la Elasticidad-Precio de Corto Plazo de la Demanda de Electricidad en República Dominicana

Guzman, Ivan and Salazar, Ricardo (2017): Estimación de la Elasticidad-Precio de Corto Plazo de la Demanda de Electricidad en República Dominicana.

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Abstract

This paper presents a theoretical model for the optimization of the decision-making process of power purchase of the electric utility companies of the Dominican Republic, taking into account the demand of end-users of the service, the short-term marginal cost of energy in the wholesale power market, and the budgetary constraints of the utility companies. This model was applied to estimate the short-term price elasticity of electricity demand for the three largest electric utility companies of the Dominican Republic, during the period 2007-2016; this evaluation was made using time series analysis techniques. The elasticities estimated were in the range of -0.012 to -0.018. It is also explored if these values undergo intraday variations. The paper closes outlining some welfare implications of the results obtained as well as policy recommendations.

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