EconPapers    
Economics at your fingertips  
 

The dynamics of sectoral electricity demand for a panel of US states: New evidence on the consumption–growth nexus

James Saunoris and Brandon Sheridan

Energy Policy, 2013, vol. 61, issue C, 327-336

Abstract: In this paper, we use a panel of the 48 contiguous US states over the period 1970–2009 to examine the dynamics of electricity demand in addressing the four hypotheses set forth in the literature: growth, conservation, neutrality, and feedback. In doing so we provide both short-run and long-run elasticity estimates for electricity demand. Recent developments in nonstationary panel estimation techniques allow for heterogeneity in the coefficients while examining the direction of causality among electricity consumption, electricity prices, and income growth. In addition to the full sample, we also disaggregate the sample into three sectors: commercial, industrial, and residential. The short-run results provide evidence in favor of the growth hypothesis for the aggregate sample, as well as for the industrial sector. For the residential and commercial sectors, the conservation hypothesis is supported. Long-run results favor the conservation hypothesis. To ascertain differences in electricity demand relating to electricity intensity we also examine states based on their efficiency in electricity consumption. Overall, the results yield in favor of the growth hypothesis for low intensity states and conservation hypothesis for high intensity states.

Keywords: Electricity consumption; Electricity prices; Energy intensity (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421513004473
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:enepol:v:61:y:2013:i:c:p:327-336

DOI: 10.1016/j.enpol.2013.05.092

Access Statistics for this article

Energy Policy is currently edited by N. France

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

 
Page updated 2024-02-12
Handle: RePEc:eee:enepol:v:61:y:2013:i:c:p:327-336