Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/147208
Authors: 
Otsuka, Akihiro
Year of Publication: 
2015
Citation: 
[Journal:] Journal of Economic Structures [ISSN:] 2193-2409 [Volume:] 4 [Year:] 2015 [Pages:] 1-11
Abstract: 
This study aims to estimate electricity demand functions in Japan's industrial and commercial sectors. We adopt data from the Energy Consumption Statistics by Prefecture by the Ministry of Economy, Trade and Industry, Japan, to delineate the demand between the industrial and commercial sector. The results reveal that in both sectors, the price elasticity of demand is extremely low in the short and long run and production elasticity is greater than price elasticity. Thus, price elasticity is not a key determinant in electricity demand fluctuations. Furthermore, an analysis of the factors influencing changes in electricity demand in the industrial sector suggests that the declining demand growth in large metropolitan areas is mainly attributable to declining production factors, not increasing electricity rates. By contrast, the commercial sector is experiencing an increasing demand for electricity and significant growth nationwide, which can be attributed to an increase in commercial floor space and advances in office automation.
Subjects: 
Electricity demand
Industrial sector
Commercial sector
Demand price elasticity
Dynamic panel model
Japan
JEL: 
C33
C36
Q41
Q43
Q48
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

Files in This Item:
File
Size
408.44 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.