Modelling the Residential Demand for Electricity in New England

Accurate forecasts of energy demand are required for public policy formation, but estimation of the residential demand for electricity presents a number of conceptual and statistical problems. This paper focuses on two interrelated issues in electricity demand analysis: model specification with respect to the price variable and the level of data aggregation. From an empirical study of demand in New England, our principal conclusions are: (a) price elasticities, estimated using state level data, differ from those at the utility level; (b) at the state level of aggregation, alternative model specifications of demand give markedly different results; (c) there appears to be significant differences between the New England states in the demand for electricity; and (d) it was not possible to discern whether consumers respond to average price or marginal price.


Issue Date:
1983
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/159513
Published in:
Journal of the Northeastern Agricultural Economics Council, Volume 12, Number 1
Journal of the Northeastern Agricultural Economics Council
Page range:
75-82
Total Pages:
8




 Record created 2017-04-01, last modified 2017-05-04

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