Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192408 
Authors: 
Year of Publication: 
2005
Series/Report no.: 
Discussion Papers No. 426
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
The paper derives a general equilibrium demand function for electricity by imposing a specific closure rule on a large CGE-model of the Norwegian economy. By a decomposition technique it quantifies the contribution from various mechanisms to the price sensitivity of aggregate electricity demand. Specifically, it identifies the contributions from substitution at the micro level, as well as changes in the industry structure to the substitution at the aggregate level. It also separates the substitution effects of equilibrium adjustments of other prices than the electricity price, and macroeconomic income effects on total demand. The direct price elasticity of aggregate electricity demand is estimated to -0.31. Within industry factor substitution contributes most to this response.
Subjects: 
Electricity demand
Computable general equilibrium model
JEL: 
Q41
Q43
Document Type: 
Working Paper

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