Estimation of Japanese price elasticities of residential electricity demand, 1990–2007

Shigeharu Okajima and Hiroko Okajima

Energy Economics, 2013, vol. 40, issue C, 433-440

Abstract: This paper estimates elasticities of Japanese residential price electricity from 1990 to 2007. The first difference generalized method of moment estimator is employed to avoid dynamic panel bias, which is not considered in most previous studies. The results show that while short-run elasticities are similar to those in previous studies, long-run elasticities are significantly lower in our study. We also find that the price elasticity of Japanese residential electricity consumption is notably affected by income inequality and severe weather. Based on these results, we provide some insights to tailor environmental taxation so as to effectively attain the Kyoto Protocol.

Keywords: Price elasticity of residential electricity demand; The first difference GMM estimator; Environmental taxes (search for similar items in EconPapers)
JEL-codes: C33 C36 H20 Q41 Q48 Q54 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:40:y:2013:i:c:p:433-440

DOI: 10.1016/j.eneco.2013.07.026

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