Price Elasticity of Electricity Consumption in Japan, 1990 to 2015

Akihiro Otsuka

SAGE Open, 2024, vol. 14, issue 1, 21582440241228654

Abstract: This study examines regional price elasticities in electricity consumption to offer valuable insights for policymaking in electricity demand-side management in Japan. By employing a partial adjustment model and utilizing data from regional electric utilities, the study estimates regional electricity demand functions. The analysis reveals that, within the residential sector, the size of houses plays a significant role in explaining regional variations in price elasticity. Likewise, in the industrial sector, the presence or absence of private power generation facilities in firms significantly influences regional disparities in price elasticity. These findings hold substantial implications for enhancing the cost-effectiveness of electricity consumption regulations and policies. JEL Classification: Q41, C01, R11.

Keywords: electricity consumption; price elasticity; electricity demand function; demand-side electricity management; Japan (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:14:y:2024:i:1:p:21582440241228654

DOI: 10.1177/21582440241228654

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