Dynamic models of residential electricity demand: evidence from Switzerland

Boogen, N., Datta, S. and Filippini, M. (2017) Dynamic models of residential electricity demand: evidence from Switzerland. Energy Strategy Reviews, 18, pp. 85-92. (doi: 10.1016/j.esr.2017.09.010)

Abstract

We estimate the short- and long-run elasticities of electricity demand in Switzerland using a dynamic model of residential electricity consumption incorporating a correction introduced by Kiviet. We find that the short-run elasticity of residential demand for electricity in Switzerland is around −0.3 while the long-run elasticity is around −0.6. Our estimates indicate that pricing policy as a plan for energy strategy may have a moderate impact on residential customers in the short run but will have a stronger influence in the long-run. In view of the recent proposal in Switzerland to introduce a tax on electricity as part of its energy strategy plan, an increase in the price of electricity may result in a moderate decrease in electricity consumption.

• Item Type: Articles
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Datta, Souvik
• Authors: Boogen, N., Datta, S., and Filippini, M.
• College/School: College of Social Sciences > Adam Smith Business School > Economics
• Journal Name: Energy Strategy Reviews
• Publisher: Elsevier
• ISSN: 2211-467X
• ISSN (Online): 2211-467X
• Published Online: 21 September 2017
• Copyright Holders: Copyright © 2017 Elsevier, Ltd.
• First Published: First published in Energy Strategy Reviews 18:85-92
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher.