Price & Income Elasticity of Residential Electricity Demand in Asia: A Meta-Analysis

Abstract

The objective of this study is to estimate the price and income elasticity of residential electricity demand quantitatively. It employs meta-regression analysis and Bayesian model averaging for price and income elasticity of electricity demand, specifically in the residential sector in Asian countries. The main contribution of this work is the compilation of 33 recent empirical studies on residential electricity demand focused on Asia to identify factors that influence and cause heterogeneity among the estimates of price and income elasticity in the short and long run. The results of this study can be helpful in understanding the effect of changes in prices and income upon household electricity demand, and it can be beneficial for devising policies to promote renewable energy, such as optimal tax policies that will aid towards future energy conservation and environmental sustainability.