Electricity Demand Elasticity, Mobility, and COVID-19 Contagion Nexus in the Italian Day-Ahead Electricity Market

The magnitude of the impact pandemic on key variables, such as electricity demand, mobility people and number COVID-19 hospitalization cases, has been unprecedented. Existing economic models have not estimated sucokh events. This paper fills this gap, investigating nexus among demand elasticity, shifting behaviors contagion with econometric estimation techniques. Firstly, using single bids to purchase recorded in Italian day-ahead wholesale market 2020, we estimate hourly price elasticity directly from short-run consumer behavior. Then, analyze effects main aspects pandemic, health situation contraction at national level, elasticities. period heavy lockdown between 10 March 3 June a reduction demand. However, when broke out again beginning October, increased, highlighting how companies activities had adopted countermeasures avoid arrest economy and, consequently, sharp