Residential demand for electricity in the national capital region
Date
2009-03
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Abstract
The short-run and long-run demand model for residential electricity in the National Capital Region is estimated using the data from the 2003 Family Income and Expenditure Survey for the short-run and data from Manila Electric Company for the long-run. Multiple regression analysis with robust standard errors was used where in several variables were tested with the demand for electricity as the dependent variable. Results for the short-run model showed that demand is expenditure inelastic for the households with all the kinds of appliances and elastic for households without appliances and those with entertainment appliances. The authors also found out that fuel consumption, age, household size, elementary and high school education have significant effects on residential electricity consumption. For the long-run model, the demand for electricity is found to be price inelastic. Results also show that number of customers has positive effects on the demand for electricity of households, while LPG prices have negative relationship with it.
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Keywords
Household demand, Household expenditure, Residential demand, Electricity consumption, NCR