Household electricity demand in Latin America and the Caribbean: A meta-analysis of price elasticity

Abstract

Studying the price elasticity of demand is essential when considering rate policies in the electricity sector. This research aims to perform a meta-analysis and a meta-regression of the price elasticity of electricity demand for the residential sector in Latin American and Caribbean countries. Results show that the true value of the short-term price elasticity is between −0.197 and −0.468 and, for the long-term, is between −0.252 and −0.331. Findings differ substantially when studies are classified by their quality in econometric procedures. The long-term price elasticity seems to be lower than estimates found for other regions.