Estimation of price and income elasticities for the Brazilian household electricity demand

Daniel Uhr () and André Chagas
Authors registered in the RePEc Author Service: Julia Gallego Ziero Uhr

No 2017_12, Working Papers, Department of Economics from University of São Paulo (FEA-USP)

Abstract: This paper fills a gap in the literature on residential energy consumption in Brazil. We estimate price and income elasticities for residential electricity consumption using disaggregated data at household level for the São Paulo metropolitan area. Data were obtained from Fundação Instituto de Pesquisas Econômicas (Fipe), which has complete access to Pesquisa de Orçamento Familiar (POF). Information about residential electricity consumption and household characteristics was available at two different periods, 1998 and 2008, which enabled us to adopt panel data estimation procedures. This study is the first to use Brazilian household level data on electricity consumption and a panel approach to estimate price and income elasticities. The results show that the price elasticity ranges from -0.26 to -0.64 and the income elasticity between 0.11 and 0.32. Controlling for a variety of fixed effects, household and family characteristics, price and income elasticities for the short-run are, approximately, -0.50, and 0.21.

Keywords: Electricity; Price elasticity; Income elasticity; Brazil; household data. (search for similar items in EconPapers)
JEL-codes: C23 D12 Q41 (search for similar items in EconPapers)
Date: 2017-08-11
New Economics Papers: this item is included in nep-ene, nep-lam and nep-reg
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