Climate | Working Paper
A meta-analysis on the price elasticity of energy demand
21 April 2016
BY: Xavier Labandeira, LABEAGA Jose Maria, LÓPEZ-OTERO Xiral
Price elasticities of energy demand have become increasingly relevant in estimating the socio-economic and environmental effects of energy policies or of other events with influence on the prices of energy goods. Since the 1970s a large number of academic papers have provided both short and long-term price elasticity estimates for different countries by using several models, data and estimation techniques. Yet the literature offers a rather wide range of estimates for the price elasticities of demand for energy. This paper quantitatively summarizes the recent, but still sizeable, empirical evidence on this matter to facilitate a sounder economic assessment of energy price changes. It does so by using meta-analysis to identify the main factors affecting the elasticity results, both short and long term, for energy in general as well as for specific products: electricity, natural gas, gasoline, diesel and heating oil.
logo cadmus Read it on Cadmus Download in open access

LATEST FSR PUBLICATIONS

Other
About 1,100 TWh of natural gas can be stored in 115 storage facilities in 19 countries in the EU27 area, accounting for 25-30% of European consumption in winter periods. Securing [...]
Other
The outbreak of the Russia-Ukraine war has revived discussions on the EU’s dependence on fossil fuel imports from Russia. To ensure gas diversification, the EU Commission has suggested over a [...]
Other
The recent surge in energy prices has prompted many governments to introduce emergency measures to reduce the impact on consumers’ electricity and gas bills. In its REPowerEU Communication of 8 [...]
Other
Different measures for carbon leakage prevention across Emissions Trading Systems (ETSs) may distort economic competition between firms. The same is true of competition between jurisdictions if decisions on the location [...]
Working Paper
The global litigation of standard essential patents (SEP) is taking a new turn with the jurisdictional battle between national courts. Some courts have started issuing anti-suit injunctions (ASI) to prohibit [...]
Article
This paper investigates the possible dynamics that may emerge in an economy in which agents adapt to environmental degradation by increasing the produced output to repair the damages of environmental [...]

Join our community

To meet, discuss and learn in the channel that suits you best.

scroll

top