Elasticities of Residential Electricity Demand in Vietnam

Abstract

Like many countries in the world, Vietnam hopes to optimize the efficiency and conservation of energy, as well as reducing environmental pollution. One of the current challenges is the problem of using electricity for households: 1) The proportion of electricity consumption is relatively high of the total; 2) Power consumption is mainly concentrated during peak hours. It is very difficult to ensure a constant supply of energy, especially during the hot summer, which causes great pressure on national energy security. Therefore, this study focuses on the calculation and analysis of the elasticicities to determine the factors affecting the electricity consumption of households in Vietnam. Hopefully, this study will allow a management agency to deliberate plans to improve the efficiency of domestic electricity use to ensure safety energy security.