Price and income elasticities of electricity demand: evidence from Jamaica

Date & time

9.30–11am 14 October 2016

Location

Seminar Room 1, Stanner Building 37, Lennox Crossing, ANU

Speakers

Alrick Campbell, PhD Scholar, Crawford School, ANU

Contacts

 Paul Burke

Jamaica’s electricity sector faces supply-side challenges. Demand-side policies have the potential to improve electricity use efficiency and reduce the likelihood of electricity disruptions. In this paper, I use the bounds testing approach to cointegration to obtain long-run price elasticity of demand estimates for the period 1970–2014. The analysis focuses on aggregate electricity demand and three categories of consumers: residential, commercial, and industrial. The findings suggest that residential and industrial consumers are most responsive to price changes, with long-run price elasticities of demand of –0.75 and –0.28, respectively. Price-based approaches are likely to be more successful in slowing electricity demand growth in these sectors

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