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This paper develops a pseudo-panel approach to examine household electricity demand behaviour through the household … electricity consumption follows an inverted U-shaped distribution as a function of the age of the household's head. Most notably … outcome has important implications for policy-making. Any public policy aimed at reducing household energy consumption should …
Persistent link: https://www.econbiz.de/10012415417
The timing of payment can enhance salience, making customers more price-responsive when paying before consumption rather than after. This study examines Indonesia’s nationwide switch to prepaid electricity metering, impacting over 40 million households. We find that prepaid metering users are...
Persistent link: https://www.econbiz.de/10015178416
We use survey evidence on reported spending in hypothetical energy price shock scenarios to study novel features of the price elasticity of energy demand and the marginal propensity to consume (MPC) after paying the energy bill. We find that the price elasticity is significantly larger for price...
Persistent link: https://www.econbiz.de/10013473647
While the global economy continues to grow, ecosystem services tend to stagnate or decline. Economic theory has shown how such shifts in relative scarcities can be reflected in project appraisal and accounting, but empirical evidence has been sparse to put theory into practice. To estimate...
Persistent link: https://www.econbiz.de/10015125553
We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily driven by the cost of producing and...
Persistent link: https://www.econbiz.de/10014250001
Traditional applied general-equilibrium (AGE) models have always faced trade-offs between analytical and computational tractability and counter-empirical restrictions. One is the assumption of homothetic preferences implying unitary income elasticities of demand, significantly inconsistent with...
Persistent link: https://www.econbiz.de/10015461516
Producers or consumers faced with an increase in taxes are usually able to shift parts of it to other levels in the value chain. We examine who is actually bearing the burden of increased energy taxes in the EU-area - consumers or exporters. Traditional tax incidence theory presumes spot...
Persistent link: https://www.econbiz.de/10011399311
The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of...
Persistent link: https://www.econbiz.de/10015437892
The marginal cost of electricity fluctuates hour-by-hour, yet retail customers typically face flat prices. Using data from all seven US wholesale markets and a new method to evaluate alternative rates set in advance that accounts for equilibrium price effects, we estimate efficiency gains...
Persistent link: https://www.econbiz.de/10015070183
The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of...
Persistent link: https://www.econbiz.de/10014470429