The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation

• 成果类型: Article
• 署名作者: Deryugina, Tatyana; MacKay, Alexander; Reif, Julian
• 署名单位: University of Illinois System; University of Illinois Urbana-Champaign; National Bureau of Economic Research; Harvard University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-APPLIED ECONOMICS
• ISSN/ISSBN: 1945-7782
• DOI: 10.1257/app.20180256
• 发表日期: 2020
• 页码: 86-114
• 关键词: price; respond

摘要

We study the dynamics of residential electricity demand by exploiting a natural experiment that produced large and long-lasting price changes in over 250 Illinois communities. Using a flexible difference-in-difference matching approach, we estimate that the price elasticity of demand grows from -0.09 in the first six months to -0.27 two years later. We find similar results with a dynamic model in which usage is a function of past and future prices. Our findings highlight the importance of accounting for consumption dynamics when evaluating energy policy.