Facebook LinkedIn Twitter
Shop

IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Swiss Residential Demand for Electricity by Time-of-Use: An Application of the Almost Ideal Demand System

Abstract:
This study examines the residential demand for electricity by time-of-use in Switzerland. For this purpose, an almost ideal demand system (AIDS) model for peak and off-peak electricity consumption is estimated using panel data coveting the years 1987 to 1990 and 21 cities. The empirical analysis characterizes the Swiss residential electricity market as rather price responsive. The own partial price elasticities are estimated to range between -1.29 and -1.50 during the peak period and between -2.36 and -2.42 during the off-peak period. These elasticities show a high responsiveness of electricity consumption to changes in peak and off-peak prices. Moreover, the positive values of the partial cross price elasticities and substitution elasticities show that peak and offpeak electricity are substitutes.

Purchase ( $25 )

Energy Specializations: Energy Modeling – Other; Electricity – Markets and Prices

JEL Codes:
C59 - Econometric Modeling: Other
D42 - Market Structure, Pricing, and Design: Monopoly

Keywords: Electricity, time of use, (TOU), AIDS model, Switzerland, panel data

DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No1-2


Published in Volume16, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.