The price response of residential electricity demand in Germany: A dynamic approach

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dc.contributor.authorFrondel, Manuel
dc.contributor.authorKussel, Gerhard
dc.contributor.authorSommer, Stephan
dc.date.accessioned2018-07-09T14:49:29Z
dc.date.available2018-07-09T14:49:29Z
dc.date.issued2018
dc.description.abstractDue to growing concerns about climate change, policy-makers from all around the world establish measures, such as carbon taxes, to lower electricity demand and energy consumption in general. Drawing on household panel data from the German Residential Energy Consumption Survey (GRECS) that span over nine years (2006-2014) and employing the sum of regulated price components as an instrument for the likely endogenous electricity price, we gauge the response of residential electricity demand to price increases on the basis of the dynamic Blundell-Bond estimator to account for potential simultaneity and endogeneity problems, as well as the Nickell bias. Estimating short- and long-run price elasticities of -0.44 and -0.66, respectively, our results indicate that price measures may be effective in dampening residential electricity consumption, particularly in the long run. Yet, we also find that responses to price changes are very heterogeneous across household groups.en
dc.identifier.urihttp://hdl.handle.net/2003/36966
dc.identifier.urihttp://dx.doi.org/10.17877/DE290R-18965
dc.language.isoende
dc.relation.ispartofseriesDiscussion Paper / SFB823;13/2018
dc.subjectdynamic panel methodsen
dc.subjectinstrumental variable approachen
dc.subject.ddc310
dc.subject.ddc330
dc.subject.ddc620
dc.titleThe price response of residential electricity demand in Germany: A dynamic approachen
dc.typeTextde
dc.type.publicationtypeworkingPaperde
dcterms.accessRightsopen access
eldorado.secondarypublicationfalsede

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