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Response of residential electricity demand to price : the effect of measurement error

Alberini, Anna ; Filippini, Massimo

In: Energy economics, 2011, vol. 33, no. 5, p. 889-895

In this paper we present an empirical analysis of the residential demand for electricity using annual aggregate data at the state level for 48 US states from 1995 to 2007. Earlier literature has examined residential energy consumption at the state level using annual or monthly data, focusing on the variation in price elasticities of demand across states or regions, but has failed to recognize...

Rational habits in residential electricity demand

Filippini, Massimo ; Hirl, Bettina ; Masiero, Giuliano

Dynamic partial adjustment models of residential electricity demand account for the fact that households may not adjust electricity consumption immediately in response to changes in prices, income, and other relevant factors, because of behavioral habits or adjustment costs for the capital stock of appliances. However, forward-looking behavior is generally neglected. Expectations about future...