Simultaneous-equation approach to analyze residential electricity demand

Thesis/Dissertation · Sat Jan 01 04:00:00 EST 1983

OSTI ID:6586830

Raffiee, K

This study is an econometric analysis of residential electricity demand in states of Illinois, Iowa, Michigan, Missouri, and Wisconsin. It examines the electricity demand function in the context of a simultaneous equation system. The question of simultaneity in electricity demand is twofold. First, since electricity is sold under a multiblock rate structure, the electricity price measures, marginal price and block premium, where the latter is defined as the difference between total expenditure on a given quantity of electricity and the expenditure if it would have been purchased at the marginal price in that block, are quantity dependent variables; that is, as the consumption block of electricity changes, both of these price measures will change. Second, another important source of simultaneity is caused by a shift in the rate structure. The sensitivity of the electricity demand function estimates under three alternative price specification is tested in this study. The electricity price measures, marginal price and block premium, are calculated.

• OSTI ID: 6586830
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
ECONOMIC ANALYSIS
ECONOMIC ELASTICITY
ECONOMICS
FEDERAL REGION V
FEDERAL REGION VII
ILLINOIS
IOWA
MICHIGAN
MISSOURI
NORTH AMERICA
POWER DEMAND
RATE STRUCTURE
RESIDENTIAL SECTOR
USA
WISCONSIN