Spatial variations in electricity-demand elasticities: the residential, commercial, and industrial demand for electricity in substate regions
This dissertation's principal objectives are to estimate econometric demand functions for 93 small substate regions and to analyze the resulting demand elasticities for spatial patterns and relationships with additional factors like degree of urbanization and climate. The analysis uses a flow-adjustment model and a two-pass estimation procedure to estimate separate sets of elasticities for electricity price, a measure of economic activty, and natural gas prices in the residential, commercial, and industrial sectors of electricity consumption. Spatial patterns of the demand elasticities among the 93 regions are examined by first grouping the regions and then by interpreting the characteristics of each group. Spatial relationships between the demand elasticities and other spatial factors are analyzed using correlation and regression. The results of the demand function analysis for the different regions were available. The grouping procedure classified the 93 regions into about seven groups. The regions which comprised each group were mapped and analyzed to evaluate any spatial patterns. The relationships between the different demand elasticities and other factors were quantitatively explored using the elasticities as dependent variables in correlation and regression analysis. Three principal conclusions can be made: (1) electricity-demand relationships and elasticities vary widely from place to place; (2) these variations do not appear to be systematic or to exhibit explainable spatial patterns; and (3) comparisons between demand functions from the substate areas and from the states indicate that statewide demand analysis masks significant amounts of spatial variability in electricity demand elasticities. These conclusions indicate that policy makers need to include spatial perspectives when formulating policy related to electricity.
- OSTI ID:
- 6724941
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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