The price elasticity of electricity demand when marginal incentives are very large

Gauthier Lanot and Mattias Vesterberg

Energy Economics, 2021, vol. 104, issue C

Abstract: Using unique data on Swedish households, we measure the price elasticity of electricity demand for households facing a mandatory non-linear distribution tariff, where households are charged based on their maximum consumption during a month, and where the marginal incentives are very large. We estimate the price elasticity using both 2SLS and bunching estimators, and we find that the price elasticity is smaller than what many previous studies on electricity demand have found.

Keywords: Demand flexibility; Non-linear pricing; Peak demand (search for similar items in EconPapers)
JEL-codes: D12 L94 Q41 Q48 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: The price elasticity of electricity demand when marginal incentives are very large (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:104:y:2021:i:c:s0140988321004692

DOI: 10.1016/j.eneco.2021.105604

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