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Management Science Letters

ISSN 1923-9343 (Online) - ISSN 1923-9335 (Print)
Quarterly Publication
Volume 4 Issue 6 pp. 1285-1288 , 2014

Estimation of Iranian price elasticities of residential electricity demand Pages 1285-1288 Right click to download the paper Download PDF

Authors: Yeganeh Mousavi Jahromi, Mostafa Heidari Haratemeh, Morteza Mahmodi Meymand, Mohsen Ameri Shahrabi

Keywords: Demand for electricity, Energy price, VECM

Abstract: This paper presents a study to determine demand for electricity in city of Yazd, Iran over the period of 1998-2008. Using vector error correction model (VECM) based on seasonal information, the study determines that electricity has no elasticity in short term in household expenditure. Therefore, government policy on increasing price of electricity will not influence demand. However, electricity maintains elasticity over the long-term period and an increase on price of electricity could motivate consumers to reduce their consumption by purchasing energy efficient facilities. Therefore, any governmental strategy to increase price may have positive impact on economy. The study also detects a positive and meaningful relationship between temperature and electricity consumption.

How to cite this paper
Jahromi, Y., Haratemeh, M., Meymand, M & Shahrabi, M. (2014). Estimation of Iranian price elasticities of residential electricity demand.Management Science Letters , 4(6), 1285-1288.

Refrences
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Journal: Management Science Letters | Year: 2014 | Volume: 4 | Issue: 6 | Views: 2344 | Reviews: 0

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