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Price and Income Elasticity of Residential Electricity Consumption in Khorezm

Author

Listed:
  • Eshchanov, Bahtiyor
  • Grinwis, Mona
  • Salaev, Sanatbek
Abstract
Price or income elasticity of demand is the percentage change in electricity demand resulting from a one-percent change in its price or income. Information on price and income elasticity of demand for electricity is crucial for formulating appropriate reform policies. In Central Asian economies with a less-developed industrial sector, the share of residential electricity consumption is relatively high. Residential electricity consumers are known to be more flexible with respect to price- and income-related changes and to adapt to these changes relatively fast. Knowledge about price and income elasticity of electricity demand is crucial for implementing, for instance, tariff reforms. The aim of this study is to estimate the short-term price and income elasticity of residential electricity demand using panel data based on time series of 6 years for the 12 districts of the Khorezm region, Uzbekistan, under the condition of data limitations.

Suggested Citation

  • Eshchanov, Bahtiyor & Grinwis, Mona & Salaev, Sanatbek, 2011. "Price and Income Elasticity of Residential Electricity Consumption in Khorezm," MPRA Paper 106240, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:106240
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    File URL: https://mpra.ub.uni-muenchen.de/106240/1/MPRA_paper_106240.pdf
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    More about this item

    Keywords

    electricity demand; elasticity; panel data; transition economy; Central Asia;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting

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