Estimation of residential electricity demand function in Seoul by correction for sample selection bias

Seung Hoon Yoo; Joo Suk Lee; Seung Jun Kwak

doi:10.1016/j.enpol.2007.06.009

Estimation of residential electricity demand function in Seoul by correction for sample selection bias

Seung Hoon Yoo, Joo Suk Lee, Seung Jun Kwak

Research output: Contribution to journal › Article › peer-review

58 Citations (Scopus)

Abstract

This paper attempts to estimate the residential electricity demand function in Seoul. To this end, we collected the data from a survey of households in Seoul and employed the bivariate model to rectify the undesirable impacts of non-response data. The results show that the size of family, the size of house, dummy for having a plasma display panel television, dummy for having an air conditioner, and the household's income have positive relationships with the residential electricity demand. On the other hand, electricity price contributes negatively to the residential electricity demand. In addition, the price and income elasticities were estimated as -0.2463 and 0.0593, respectively, implying that residential electricity demand in Seoul is price- and income-inelastic. Such useful information is expected to help policy-makers regulate the residential electricity supply and predict the effect of the price on the residential electricity demand in the future.

Original language	English
Pages (from-to)	5702-5707
Number of pages	6
Journal	Energy Policy
Volume	35
Issue number	11
DOIs	https://doi.org/10.1016/j.enpol.2007.06.009
Publication status	Published - 2007 Nov

Keywords

Bivariate model
Electricity demand
Non-response

ASJC Scopus subject areas

General Energy
Management, Monitoring, Policy and Law

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10.1016/j.enpol.2007.06.009

Cite this

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title = "Estimation of residential electricity demand function in Seoul by correction for sample selection bias",

abstract = "This paper attempts to estimate the residential electricity demand function in Seoul. To this end, we collected the data from a survey of households in Seoul and employed the bivariate model to rectify the undesirable impacts of non-response data. The results show that the size of family, the size of house, dummy for having a plasma display panel television, dummy for having an air conditioner, and the household's income have positive relationships with the residential electricity demand. On the other hand, electricity price contributes negatively to the residential electricity demand. In addition, the price and income elasticities were estimated as -0.2463 and 0.0593, respectively, implying that residential electricity demand in Seoul is price- and income-inelastic. Such useful information is expected to help policy-makers regulate the residential electricity supply and predict the effect of the price on the residential electricity demand in the future.",

keywords = "Bivariate model, Electricity demand, Non-response",

author = "Yoo, {Seung Hoon} and Lee, {Joo Suk} and Kwak, {Seung Jun}",

year = "2007",

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language = "English",

volume = "35",

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T1 - Estimation of residential electricity demand function in Seoul by correction for sample selection bias

AU - Yoo, Seung Hoon

AU - Lee, Joo Suk

AU - Kwak, Seung Jun

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N2 - This paper attempts to estimate the residential electricity demand function in Seoul. To this end, we collected the data from a survey of households in Seoul and employed the bivariate model to rectify the undesirable impacts of non-response data. The results show that the size of family, the size of house, dummy for having a plasma display panel television, dummy for having an air conditioner, and the household's income have positive relationships with the residential electricity demand. On the other hand, electricity price contributes negatively to the residential electricity demand. In addition, the price and income elasticities were estimated as -0.2463 and 0.0593, respectively, implying that residential electricity demand in Seoul is price- and income-inelastic. Such useful information is expected to help policy-makers regulate the residential electricity supply and predict the effect of the price on the residential electricity demand in the future.

AB - This paper attempts to estimate the residential electricity demand function in Seoul. To this end, we collected the data from a survey of households in Seoul and employed the bivariate model to rectify the undesirable impacts of non-response data. The results show that the size of family, the size of house, dummy for having a plasma display panel television, dummy for having an air conditioner, and the household's income have positive relationships with the residential electricity demand. On the other hand, electricity price contributes negatively to the residential electricity demand. In addition, the price and income elasticities were estimated as -0.2463 and 0.0593, respectively, implying that residential electricity demand in Seoul is price- and income-inelastic. Such useful information is expected to help policy-makers regulate the residential electricity supply and predict the effect of the price on the residential electricity demand in the future.

KW - Bivariate model

KW - Electricity demand

KW - Non-response

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DO - 10.1016/j.enpol.2007.06.009

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Estimation of residential electricity demand function in Seoul by correction for sample selection bias

Abstract

Keywords

ASJC Scopus subject areas

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