Functional Forms and the Demand for Commercial Electricity in the U.S

Yu Hsing and A.M.M. Jamal
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Yu Hsing: Department of Management and Business Administration, SLU 10350, Southeastern Louisiana College, Hammond, Louisiana 70402, USA
A.M.M. Jamal: Department ofMarketing and Supply Chain Management, SLU 10844, Southeastern Louisiana University, Hammond, Louisiana 7040, USA

Bulletin of Energy Economics (BEE), 2015, vol. 3, issue 2, 75-81

Abstract: This paper examines the demand for commercial electricity in the U.S. and focuses on the functional form. The results show that the linear-log form performs better than the log-log, linear and log-linear forms. The demand for commercial electricity is positively affected by real GDP, the real price of commercial natural gas and the lagged dependent variable and negatively associated with the real own price. Long-run price, income and cross-price elasticities of the demand for commercial electricity consumption in absolute values have declined over time.

Keywords: Electricity consumption; Substitute price; Elasticity of demand (search for similar items in EconPapers)
JEL-codes: D10 Q4 (search for similar items in EconPapers)
Date: 2015
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