Download This PaperThe Long-Run Price Elasticity of Residential Electricity Demand in Sweden
21 Pages Posted: 16 Feb 2022
Abstract
In this paper, I use spatial variation in electricity distribution prices to measure the long-run price elasticity of electricity demand for Swedish households. The results reveal that households are inelastic in the long-run, with an estimated price elasticity of approximately − 0.34. This have important policy implications, and suggest that pricing policies will have limited effect on residential electricity demand.
Keywords: Electricity Demand, Spatial Price Variation, energy policy, Distribution Pricing
Suggested Citation: Suggested Citation
Vesterberg, Mattias, The Long-Run Price Elasticity of Residential Electricity Demand in Sweden. Available at SSRN: https://ssrn.com/abstract=4028707 or http://dx.doi.org/10.2139/ssrn.4028707
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