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Evaluate the Impact of Demand Management Policies on Electricity Consumption Saving in the Household Sector (Evidence From 31 provinces of Iran)

Khatereh Kaveh (), Ali Emami Mybodi (), Farid Asgari () and Hazhbar Kiani ()
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Khatereh Kaveh: Ph.D. Studnt of Economics, Islamic Azad University Abhar Branch
Ali Emami Mybodi: Professor of Economics, University of Allameh Tabatabaee
Farid Asgari: Assistant Profosser of Economics, Islamic Azad University Abhar Branch
Hazhbar Kiani: Professor of Economics, Islamic Azad University Central Tehran Branch

Quarterly Journal of Applied Theories of Economics, 2021, vol. 8, issue 3, 167-192

Abstract: The purpose of this study is to evaluate the impact of demand management policies on electricity consumption saving in the household sector in Iran during 2010-2017. The results confirm that household electricity demand is an inverse function of electricity price, household dimension, cooling requirement, and gas price in the second 5 months of the year and energy intensity index. Household electricity demand is also a direct function of gas prices in the summer, heating needs and income. According to the results, the average short-term and long-term price elasticity of electricity demand in Iran are estimated at -0.03 and -0.13, respectively. Electricity consumption in the previous period was the most influential variable in the trend of electricity consumption during the studied years in the domestic sector in Iran. Given the diversity of climate and the need for heating and cooling, which is one of the involuntary factors leading Iranian citizens to increase energy consumption, it is necessary to pay attention to non-price policies in the home and building sector.

Keywords: Electricity demand; pricing policy; non-pricing; electricity consumption. (search for similar items in EconPapers)
JEL-codes: C23 D12 Q40 R41 (search for similar items in EconPapers)
Date: 2021
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