Regional impact of changes in disposable income on Spanish electricity demand: A spatial econometric analysis

Leticia M. Blázquez Gomez, Massimo Filippini and Fabian Heimsch

Energy Economics, 2013, vol. 40, issue S1, S58-S66

Abstract: This paper presents an empirical analysis of residential electricity demand considering the existence of spatial effects. This analysis has been performed using aggregate panel data at the province level for 46 Spanish provinces for the period from 2001 to 2010. For this purpose, we estimated a log–log demand equation using a spatial autoregressive model with autoregressive disturbances (SARAR). The purpose of this empirical analysis is to determine the influence of price, income, and spatial spillovers on residential electricity demand in Spain. We are particularly interested in analyzing the impact of household disposable income variation across provinces observed during the economic crisis period 2009–2010. The estimation results show relatively low income elasticity and an inelastic demand to prices. Furthermore, the results show the presence of spatial effects in Spanish residential electricity consumption.

Keywords: Residential electricity demand; Aggregate panel data; Spatial economic effect; Economic crisis; Spatial econometrics (search for similar items in EconPapers)
JEL-codes: D D2 Q Q4 R2 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (33)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S014098831300203X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:40:y:2013:i:s1:p:s58-s66

DOI: 10.1016/j.eneco.2013.09.008

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().