Dynamic models of residential electricity demand: Evidence from Switzerland
Additional information
Authors
Boogen N.,
Souvik D.,
Filippini M.
Type
Journal Article
Year
2017
Language
English
Abstract
We estimate the short- and long-run elasticities of electricity demand in Switzerland using a dynamic model of residential electricity consumption incorporating a correction introduced by Kiviet. We find that the short-run elasticity of residential demand for electricity in Switzerland is around −0.3 while the long-run elasticity is around −0.6. Our estimates indicate that pricing policy as a plan for energy strategy may have a moderate impact on residential customers in the short run but will have a stronger influence in the long-run. In view of the recent proposal in Switzerland to introduce a tax on electricity as part of its energy strategy plan, an increase in the price of electricity may result in a moderate decrease in electricity consumption.
Journal
Energy Strategy Reviews
Volume
18
Start page number
85
End page number
92
