Elasticities of electricity demand in urban Indian households
Additional information
Authors
Filippini M.,
Pachauri S.
Type
Journal Article
Year
2004
Language
English
Abstract
In the past, several electricity demand studies have been published for India based on aggregate macro data at the country or sub-national/state level. Since the underlying theory of consumer demand is based on the behaviour of individual agents, the use of micro data, which reflects individual and household behaviour, more closely, can shed greater light on the nature of consumer responses. In this paper, seasonal price and income elasticities of electricity demand in the residential sector of all urban areas of India are estimated for the first time using disaggregate level survey data for about thirty thousand households. Three electricity demand functions have been econometrically estimated using monthly data for the winter, monsoon and summer season in order to understand the extent to which factors like income, prices, household size and other household specific characteristics, influence variations observed in individual households’ electricity demand. The results show electricity demand is income and price inelastic in all three seasons, and that household, demographic and geographical variables are significant in determining electricity demand.
Keywords
India, residential electricity use, demand analysis, price and income elasticities
Journal
Energy Policy
Volume
32
Number ( Month )
3
Pages (or article number)
429-436
Diffusion
License
License undefined
Visibility
Public
Status open access
Green
