Price freezes, durables and residential electricity demand Evidence from the Greater Buenos Aires

摘要

This paper examines the determinants of residential electricity demand in the Greater Buenos Aires between 1997 and 2006. During the second half of this period, residential tariffs remained nominally fixed, while an income boom boosted up the sales of durables. This study differs from previous works in that it explicitly considers the impact of the stock of air-conditioners on residential demand. The paper reports short-and long-run elasticities and examines the contribution of prices and durables to recent demand growth. Simulations illustrate the impact of prices and durables on future demand.