Household Electricity Demand in Spanish Regions. Public Policy Implications

IEB Working Paper N. 2014/24

47 Pages Posted: 25 Jul 2014

See all articles by Desiderio Romero-Jordán

Desiderio Romero-Jordán

Universidad Rey Juan Carlos

Pablo del Rio

Spanish Council for Scientific Research (CSIC)

Cristina Peñasco

Spanish Council for Scientific Research (CSIC)

Date Written: June 18, 2014

Abstract

This paper analyses the determinants of household electricity demand with a panel data, partial adjustment model of Spanish regions in the 1998-2009 period. The results show that electricity demand responds positively and significantly to electricity demand in the previous year, income, temperature range, penetration of electric water heating in households and the number of heating and cooling degree days. It is significantly and negatively related to electricity prices, gas prices, penetration of electric heating in households and whether households have at least one member being 64 years or older. Price elasticities in the preferred model are -0.26 (short-term) and -0.37 (long-term). Income elasticities are 0.31 (short-term) and 0.43 (long-term). Several implications for electricity-efficiency policies are derived from the results of the analysis.

Keywords: electricity demand, residential sector, partial adjustment model

JEL Classification: Q41, Q43, Q55

Suggested Citation

Romero-Jordán, Desiderio and del Rio, Pablo and Peñasco, Cristina, Household Electricity Demand in Spanish Regions. Public Policy Implications (June 18, 2014). IEB Working Paper N. 2014/24, Available at SSRN: https://ssrn.com/abstract=2471056 or http://dx.doi.org/10.2139/ssrn.2471056

Desiderio Romero-Jordán

Universidad Rey Juan Carlos ( email )

Calle Tulipán, s/n
Madrid, Móstoles 28230
Spain

Pablo Del Rio (Contact Author)

Spanish Council for Scientific Research (CSIC) ( email )

28006 Madrid
Spain

Cristina Peñasco

Spanish Council for Scientific Research (CSIC) ( email )

28006 Madrid
Spain

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