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.

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.

• Item Type: MPRA Paper
• English Title: An Estimation of the Short-Run Price Elasticity of Electricity Demand in the Dominican Republic
• Language: Spanish
• Keywords: Power Markets; Economics of Regulation; Electricity Demand; Electric Utilities
• Subjects: L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure ; Size Distribution of Firms; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets; L - Industrial Organization > L4 - Antitrust Issues and Policies > L43 - Legal Monopolies and Regulation or Deregulation; L - Industrial Organization > L5 - Regulation and Industrial Policy > L52 - Industrial Policy ; Sectoral Planning Methods; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L94 - Electric Utilities

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