Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/191512 
Year of Publication: 
2018
Series/Report no.: 
IRENE Working Paper No. 18-03
Publisher: 
University of Neuchâtel, Institute of Economic Research (IRENE), Neuchâtel
Abstract: 
In this paper, we use data from a new household-level panel survey to estimate short- and long-run price elasticities of residential electricity demand in Switzerland. We exploit Switzerland's unique local variation in topography-related grid maintenance costs and electricity taxation, to address endogeneity of average prices in our models. Using first difference and gradual adjustment models, we find short-run elasticities of -0.3 and long-run elasticities in excess of negative unity. Results thus suggest that a tax on electricity, as initially foreseen as a part of Switzerland's Energy Strategy 2050, is likely to have a moderate effect in the short run, but an important one in the long run.
Subjects: 
Residential electricity demand
price elasticity
panel data
Switzerland
JEL: 
C23
D12
Q41
Q48
Document Type: 
Working Paper

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