ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY
Using an error correction framework, this study analyzes the long- and short-run dynamics of electricity demand in Ciudad Juarez, a large metropolitan economy on Mexico’s northern border. Demand is decomposed into the total number of electricity accounts and electricity usage per customer, each of w...
Main Authors: | , , |
---|---|
Format: | Article |
Language: | English |
Published: |
EconJournals
2014-10-01
|
Series: | International Journal of Energy Economics and Policy |
Online Access: | http://www.econjournals.com/index.php/ijeep/article/view/899/505 |
id |
doaj-6b4f104b86594869a0779c6f64091b55 |
---|---|
record_format |
Article |
spelling |
doaj-6b4f104b86594869a0779c6f64091b552020-11-25T03:29:30ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532146-45532014-10-0144495505ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMYThomas M. FullertonEricka C. Méndez-CarrilloAdam G. WalkeUsing an error correction framework, this study analyzes the long- and short-run dynamics of electricity demand in Ciudad Juarez, a large metropolitan economy on Mexico’s northern border. Demand is decomposed into the total number of electricity accounts and electricity usage per customer, each of which is modeled separately. A two-stage least squares approach is used to estimate the per customer electricity demand equations due to the endogeneity of the average price variable. The results indicate sustained growth in population, employment, and income can be expected to exert substantial upward pressure on regional electric power demand. Furthermore, demand is found to be price-inelastic in this metropolitan area, suggesting that rate increases can help raise the revenues necessary to fund expansion of the electrical grid.http://www.econjournals.com/index.php/ijeep/article/view/899/505 |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Thomas M. Fullerton Ericka C. Méndez-Carrillo Adam G. Walke |
spellingShingle |
Thomas M. Fullerton Ericka C. Méndez-Carrillo Adam G. Walke ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY International Journal of Energy Economics and Policy |
author_facet |
Thomas M. Fullerton Ericka C. Méndez-Carrillo Adam G. Walke |
author_sort |
Thomas M. Fullerton |
title |
ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY |
title_short |
ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY |
title_full |
ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY |
title_fullStr |
ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY |
title_full_unstemmed |
ELECTRICITY DEMAND IN A NORTHERN MEXICO METROPOLITAN ECONOMY |
title_sort |
electricity demand in a northern mexico metropolitan economy |
publisher |
EconJournals |
series |
International Journal of Energy Economics and Policy |
issn |
2146-4553 2146-4553 |
publishDate |
2014-10-01 |
description |
Using an error correction framework, this study analyzes the long- and short-run dynamics of electricity demand in Ciudad Juarez, a large metropolitan economy on Mexico’s northern border. Demand is decomposed into the total number of electricity accounts and electricity usage per customer, each of which is modeled separately. A two-stage least squares approach is used to estimate the per customer electricity demand equations due to the endogeneity of the average price variable. The results indicate sustained growth in population, employment, and income can be expected to exert substantial upward pressure on regional electric power demand. Furthermore, demand is found to be price-inelastic in this metropolitan area, suggesting that rate increases can help raise the revenues necessary to fund expansion of the electrical grid. |
url |
http://www.econjournals.com/index.php/ijeep/article/view/899/505 |
work_keys_str_mv |
AT thomasmfullerton electricitydemandinanorthernmexicometropolitaneconomy AT erickacmendezcarrillo electricitydemandinanorthernmexicometropolitaneconomy AT adamgwalke electricitydemandinanorthernmexicometropolitaneconomy |
_version_ |
1724578809119768576 |