Residential Electricity Demand in El Paso

Thomas Fullerton (), David R. Macias and Adam G. Walke

Journal of Regional Analysis and Policy, 2016, vol. 46, issue 2

Abstract: This study analyzes the demand for residential electricity in El Paso, Texas, USA. Annual data are provided by El Paso Electric Company covering the period from 1977 to 2014. This study reports a negative long - run income elasticity for residential electricity demand. Per customer residential electricity usage declines by 0.68 per cent for every 1 - percent increase in real per capita income over the long run, indicating that electricity is treated as an inferior good by households in this metropolitan economy. That result runs counter to many earlier studies but corroborates recent empirical evidence for Seattle, Washington, and other regions of the United States. Further examination of residential electricity consumption behavior is warranted. Rate policy issues are also discussed.

Keywords: Community/Rural/Urban Development; Consumer/Household Economics; Demand and Price Analysis; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:jrapmc:262578

DOI: 10.22004/ag.econ.262578

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