How income and price changes affect the electricity demand? Evidence from Türkiye’s residential sector

Q1 Social Sciences

Electricity Journal Pub Date : 2025-02-01 DOI:10.1016/j.tej.2025.107459

İsmail Kavaz

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引用次数: 0

Abstract

This study undertakes a comprehensive analysis of the income and price elasticities of residential electricity demand for Türkiye, spanning from 1980 to 2018. By employing the Structural Time Series Modelling method, the short- and long-run factors of income elasticities are found as 0.20 and 0.32, while the corresponding price parameters are determined as −0.08 for the short-term and −0.14 in the long-term, respectively. These elasticity estimations are crucial for informing policy-making processes, particularly in strategizing for the residential sector in Türkiye. The inelastic nature of these estimates, being less than 1, suggests that electricity constitutes a necessary commodity within the residential sector of Türkiye. It implies a limited sensitivity of consumers to fluctuations in price and income, indicating that changes in these factors do not significantly alter residential electricity demand in Türkiye. Additionally, this study extends its insights by providing forecasts for residential electricity demand. The projections indicate that by the year 2030, the electricity demand within Türkiye’s residential sector is projected to range between 90 and 106 Terawatt-hours (TWh). This forecasted data serves as an essential tool for future planning and policy development in the context of residential electricity consumption.

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来源期刊

Electricity Journal Business, Management and Accounting-Business and International Management

CiteScore

5.80

自引率

0.00%

发文量

审稿时长

31 days

期刊介绍： The Electricity Journal is the leading journal in electric power policy. The journal deals primarily with fuel diversity and the energy mix needed for optimal energy market performance, and therefore covers the full spectrum of energy, from coal, nuclear, natural gas and oil, to renewable energy sources including hydro, solar, geothermal and wind power. Recently, the journal has been publishing in emerging areas including energy storage, microgrid strategies, dynamic pricing, cyber security, climate change, cap and trade, distributed generation, net metering, transmission and generation market dynamics. The Electricity Journal aims to bring together the most thoughtful and influential thinkers globally from across industry, practitioners, government, policymakers and academia. The Editorial Advisory Board is comprised of electric industry thought leaders who have served as regulators, consultants, litigators, and market advocates. Their collective experience helps ensure that the most relevant and thought-provoking issues are presented to our readers, and helps navigate the emerging shape and design of the electricity/energy industry.