Ipu Bibliography: Price Elasticity of Electricity Demand

" …the price of electricity was found to be a significant determinant of electricity demand in most cases with the expected inverse relationship (higher prices mean less consumption).The results provided no evidence that the responsiveness of Ontario industrial demand to the price of electricity during time periods when demand is the strongest has strengthened since market opening except, perhaps, in the case of metal ore mining and motor vehicle manufacturing power demand. The electricity price appeared to matter most in the pulp and paper industry, perhaps because of the competitive pressures that industry is facing and the ability of some firms to reduce their electricity demand because of excess capacity. Demand in the petroleum refining industry appeared to be the least price sensitive, possibly because the increased cost of oil feedstock and other costs can be more readily passed on to consumers. " " In this study, we examine how trends in several measures of the energy market may vary at the state and regional levels and in particular how one important parameter used in the [National Energy Modeling System] model, price elasticity of demand (a measure of how demand responds to price), varies at the national, regional, state, and utility levels…To determine if regional, state, or sub-state characteristics could affect the size of the impact from energy-efficiency technologies on energy prices, supply, and consumption, we looked at how individual factors—such as climate, supply constraints, energy costs, and demand for natural gas—might themselves affect the extent of the impact of energy efficiency. "  Bjorner, Thomas Bue, et al. (2001). " Industrial Companies' Demand for Electricity: Evidence from a Micropanel, " Energy Economics 23: 595-617. Accessed on 5/18/09 at [link]. " The paper presents a micro-econometric analysis of industrial companies' demand for electricity. Previous studies on electricity consumption in the industrial sector have relied on aggregate data or cross-section observations. Here we present an econometric study on electricity demand based on a panel of 2949 Danish companies followed from 1983 to 1996. It is found that estimators of electricity demand that take account of the panel structure (fixed effect models) yield considerably lower price and production elasticities compared to estimators that do not (like cross-section models). It is also investigated how various company characteristics like size, type of industrial sub-sector and electricity intensity in production influence price and production elasticities. It appears that companies with a high electricity intensity also …