Investigation of structural changes in residential electricity demand (open access)

Investigation of structural changes in residential electricity demand

The purpose of this study was to investigate the stability of aggregate national residential electricity demand coefficients over time. The hypothesis is maintained that the aggregate residential demand is the sum of various end-use demand components. Since the end-use composition changes over time, the demand relationship may change as well. Since the end-use composition differs among regions, the results obtained from this study can be used for making inferences about regional differences in electricity demand relationships. There are two additional sources for a possible structural change. One is that consumers may react differently to declining and rising prices, secondly, the impact of the 1973 oil embargo may have shifted demand preferences. The electricity demand model used for this study is presented. A moving regression method was employed to investigate changes in residential electricity demand over time. The statistical results show a strikingly consistent pattern of change for most of the structural variables. The most important finding of this study is that the estimated structure of residential electricity demand changes systematically over time as a result of changes in the characteristics (both durability and saturation level) of the stock of appliances. Furthermore, there is not strong evidence that the structural changes …
Date: September 23, 1982
Creator: Chern, W. S. & Bouis, H. E.
System: The UNT Digital Library