Response of residential electricity demand to price: The effect of measurement error

Energy Economics

Volumn 33, Issue 5, 2011, Pages 889-895

  Alberini, Anna ^a,b,d   Filippini, Massimo ^b,c  

^a UNIVERSITY OF MARYLAND   (United States)

^b ETH ZURICH   (Switzerland)

^c UNIVERSITY OF LUGANO   (Switzerland)

^d QUEEN'S UNIVERSITY BELFAST   (United Kingdom)

Author keywords

Dynamic panel data models; Gas demand; Panel data; Partial adjustment model; Residential electricity; US states

Indexed keywords

ADJUSTMENT MODEL; DYNAMIC PANEL DATA; GAS DEMAND; PANEL DATA; RESIDENTIAL ELECTRICITY; US STATES;

ELASTICITY; ELECTRICITY; ENERGY POLICY; ENERGY UTILIZATION; ESTIMATION; FOSSIL FUEL POWER PLANTS; GAS EMISSIONS; GAS PLANTS; GLOBAL WARMING; GREENHOUSE GASES;

COSTS;

COAL; DEMAND ANALYSIS; DEMAND ELASTICITY; ECONOMETRICS; ELECTRICITY; ENERGY POLICY; ENERGY USE; ESTIMATION METHOD; GAS SUPPLY; LEAST SQUARES METHOD; NUMERICAL MODEL; PANEL DATA; PRICE DYNAMICS; RESIDENTIAL ENERGY;

UNITED STATES;

LUMPY SKIN DISEASE VIRUS;

EID: 80052138874     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2011.03.009     Document Type: Article

References (41)

1. Alberini, A., Gans, W., Velez-Lopez, D., (2011). "Residential Consumption of Gas and Electricity in the U.S.: The Role of Prices and Income", forthcoming in Energy Economics.
2. Anderson T.W., Hsiao C. Formulation and estimation of dynamic models using panel data. Journal of Econometrics 1982, 18(1):47-82.
3. Arellano M., Bond S. Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 1991, 58:277-297.
4. Baltagi B.H. Econometric Analysis of Panel Data 2001, Wiley & Sons, Chichester.
5. Baltagi B.H., Bresson G., Pirotte A. Comparison of forecast performance for homogeneous, heterogeneous and shrinkage estimators: some empirical evidence from U.S. electricity and natural gas consumption. Economics Letters 2002, 76(3):375-382.
6. Bernstein M.A., Griffin J. Regional differences in price-elasticity of demand for energy. The Rand Corporation Technical Report 2005.
7. Black D.A., Kniesner T.J. On the measurement of job risk in hedonic wage models. Journal of Risk and Uncertainty 2003, 27:205-220.
8. Blundell R., Bond S. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 1998, 87(1):115-143.
9. Borenstein, Severin, 2008. Equity effects of increasing-block electricity pricing, CSEM Working paper 180, available at http://escholarship.org/uc/item/3sr1h8nc.
10. Bruno G.S.F. Approximating the bias of the LSDV estimator for dynamic unbalanced panel data models. Economics Letters 2005, 87:361-366.
11. Cameron A.C., Trivedi P.K. Microeconometrics: Methods and Applications 2005, Cambridge University Press, Cambridge, UK.
12. Cameron A.C., Trivedi P.K. Microeconometrics Using Stata 2010, STATA Press, College Station, TX.
13. Congressional Budget Office The economic effects of legislation to reduce greenhouse gas emissions. Statement of Douglas Elmendorf before the Committee on Energy and Natural Resources, United States Senate 2009, available at, (accessed 19 July 2010). http://www.cbo.gov/ftpdocs/105xx/doc10561/10-14-Greenhouse-GasEmissions.pdf.
14. Deaton A., Muellbauer J. Economics and Consumer Behavior 1980, Cambridge University Press, Cambridge.
15. Espey J.A., Espey M. Turning on the lights: a meta-analysis of residential electricity demand elasticities. Journal of Agricultural and Applied Economics 2004, 36(1):65-81.
16. Fell Harrison, Li Shanjun, Paul Anthony A new look at residential electricity demand using household expenditure data. RFF Discussion paper 10-57, Washington, DC, October 2010.
17. Filippini M. Swiss residential demand for electricity by time-of-use. Resource and Energy Economics 1995, 17:281-290.
18. Filippini M. Swiss residential demand for electricity. Applied Economic Letters 1999, 6(8):533-538.
19. Filippini M. Short and long-run time-of-use price elasticities in Swiss residential electricity demand. CEPE Working paper 2010.
20. Flaig G. Household production and the short-run and long-run demand for electricity. Energy Economics 1990, 12(2):116-124.
21. Greene W.H. Econometric Analysis 2008, Prentice Hall, Upper Saddle River, NJ. Sixth Edition.
22. Haas R., Schipper L. Residential energy demand in OECD-countries and the role of irreversible efficiency improvements - Evidence from the period 1970-1993. Energy Economics 1998, 20:421-442.
23. Halvorsen R. Residential demand for electric energy. The Review of Economics and Statistics 1975, 57(1):12-18.
24. Harris M., Matyas S.L., Sevestre P. Dynamic models for short panels, in Matyas-Sevestre. The Econometrics of Panel Data 2008, 249-278. Springer-Verlag, Darmstadt, Germany. Third Edition.
25. Hayakawa K. Small sample bias properties of the system GMM estimator in dynamic panel data models. Economics Letters 2007, 95(1):32-38.
26. Houthakker H.S. Residential electricity revisited. Energy Journal 1980, 1(1):29-41.
27. Ito Koichiro Do consumers respond to marginal or average price? Evidence from nonlinear electricity pricing, draft paper 2010, University of California, Berkeley,, available at http://ecnr.berkeley.edu/vfs/PPs/Ito-Koi/web/JMP_Koichiro_Ito_UC_Berkeley_2010_1122.pdf2010.
28. Judson R.A., Owen A.L. Estimating dynamic panel data models: a guide for macroeconomists. Economic Letters 1999, 65(1):9-15.
29. Kamerschen D.R., Porter D.V. The demand for residential, industrial, and total electricity, 1973-1998. Energy Economics 2004, 26(1):87-100.
30. Kiviet J.F. On bias, inconsistency, and efficiency of various estimators in dynamic panel data models. Journal of Econometrics 1995, 68(1):53-78.
31. National Academy of Science Limiting the Magnitude of Future Climate Change 2010, The National Academies Press, Washington, DC.
32. Nickell S. Biases in models with fixed effects. Econometrica 1981, 49(6):1417-1426.
33. Paul A., Myers E., Palmer K. A partial adjustment model of U.S. electricity demand by region, season, and sector. Resource for the Future Discussion Paper 08-50, Washington, DC, April 2009.
34. Reiss P., White M. Household Electricity Demand, Revisited. Review of Economic Studies 2005, 72:853-883.
35. Shin J.S. Perception of price when price information is costly: evidence from residential electricity demand. The Review of Economics and Statistics 1985, 67(4):591-598.
36. Taylor L.D. The demand for electricity: a survey. Bell Journal of Economics 1975, 6(1):74-110.
37. Thomas R.L. Applied Demand Analysis 1987, Longman.
38. U.S.Environmental Protection Agency EPA Analysis of the American Clean Energy and Security Act of 2009, H.R. 2454 in the 111th Congress available at, (accessed 19 July 2010). http://www.epa.gov/climatechange/economics/pdfs/HR2454_Analysis.pdf.
39. U.S.Environmental Protection Agency EPA Analysis of the American Power Act in the 111th Congress available at, (accessed 19 July 2010). http://www.epa.gov/climatechange/economics/pdfs/EPA_APA_Analysis_6-14-10.pdf.
40. US Bureau of Labor Statistics Consumer Price Index (accessed 18 July 2010). http://www.bls.gov/cpi/.
41. Xiao N., Zarnikau J., Damien P. Testing functional forms in energy modelling: an application of the Bayesian approach to U.S. electricity demand. Energy Economics 2007, 29:158-166.