Switching Response to Power Prices: Evidence from German Households

Konferenzbeitrag

Empirical evidence on the response of German households to electricity price changes is largely lacking. Using data from Germany's Residential Energy Consumption Survey (GRECS), we fill this void by employing an instrumental variable approach to cope with the endogeneity of the consumers' tariff choice. Exploiting our information on the households' knowledge about power prices, we additionally employ an Endogenous Switching Regression Model to estimate price elasticities for two groups of households: those that are informed about prices and those that are price-ignorant. With elasticity estimates falling between -0.91 and zero, we find residential electricity demand to be quite inelastic. Households with price information are sensitive to price changes while the demand of uninformed household is entirely price inelastic.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2016: Demographischer Wandel - Session: Consumer Behavior ; No. F06-V2

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Energy: Demand and Supply; Prices ; Consumer Economics: Empirical Analysis ; Single Equation Models: Single Variables: Instrumental Variables (IV) Estimation

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kussel, Gerhard ; Frondel, Manuel
• Ereignis: Veröffentlichung
• (wer): ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften, Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel und Hamburg
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/145728
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ