Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe
Recent volatility in international energy prices has revealed South Eastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region s energy-intensive industries are...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2010/01/11617936/price-elasticity-nonresidential-demand-energy-south-eastern-europe http://hdl.handle.net/10986/19951 |
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okr-10986-19951 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ADMINISTERED PRICE ADVERSE EFFECT AGGREGATE LEVEL APPROACH AVAILABILITY AVERAGE PRICE BALANCE CAPACITY OF ELECTRICITY CEMENT CHEAPER ENERGY CHEMICAL MANUFACTURING COMMERCE COMMERCIAL DEMAND COMMODITY PRICES COMPETITIVENESS CONDITIONAL DEMAND CONSUMPTION OF ENERGY COOKING COST FUNCTIONS COST INCREASES CRUDE OIL CRUDE OIL PRICE DECLINE IN ENERGY CONSUMPTION DEMAND CURVE DEMAND DECLINES DEMAND ELASTICITY DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FUNCTION DEVELOPMENT STRATEGY DOMESTIC ENERGY DOMESTIC ENERGY SUPPLY DOMESTIC MARKET ECONOMETRICS ECONOMIC COMPETITIVENESS ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES ECONOMIC THEORY ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY OF SUBSTITUTION ELECTRICAL TRANSFORMERS ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS EMPLOYMENT END USERS END-USE END-USERS ENERGY ALTERNATIVES ENERGY BALANCE ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY COSTS ENERGY CRISIS ENERGY DEMAND ENERGY DEMAND ELASTICITIES ENERGY EFFICIENCY ENERGY EXPENDITURE ENERGY INPUT ENERGY INTENSIVE ENERGY MARKET ENERGY MARKETS ENERGY POLICIES ENERGY POLICY ENERGY PRICE ENERGY PRICES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENERGY SUPPLY ENERGY USE ENERGY USERS ENERGY-EFFICIENT DEVICES EXCESS SUPPLY EXPENDITURES EXPORTS FACTOR DEMAND FACTOR PRICE FACTOR PRICES FUEL FUEL CONSUMPTION FUEL PRICE FUELS GDP GENERATION GENERATION CAPACITY HIGH ENERGY INTENSITY HIGH ENERGY PRICES HOT WATER HYDROPOWER HYDROPOWER GENERATION IMPROVING ENERGY EFFICIENCY INCOME INDUSTRIAL ELECTRICITY PRICE INDUSTRIAL ENERGY CONSUMPTION INEFFICIENCY INPUT PRICES INTERNATIONAL NATURAL GAS MAJOR ENERGY SOURCE MARKET CONDITION MARKET PRICES MARKET REFORMS MARKET STRUCTURE NATURAL GAS OIL CRISIS POTENTIAL DEMAND POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER STATIONS POWER SYSTEM PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE CHANGES PRICE DISCRIMINATION PRICE ELASTICITIES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE ELASTICITY OF ENERGY DEMAND PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE POLICY PRICES OF COAL PRICING POLICY PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCT QUALITY PRODUCTION COSTS PRODUCTION LEVELS PUBLIC UTILITIES RESIDENTIAL CONSUMERS RESIDENTIAL CUSTOMERS RESIDENTIAL DEMAND RESIDENTIAL ELECTRICITY RESIDENTIAL ENERGY RESIDENTIAL ENERGY DEMAND RETAIL RETAIL PRICES SCALE EFFECT SECURITY OF ENERGY SUPPLY SPOT PRICE SUBSTITUTION SUBSTITUTION EFFECT SUPPLY COST SUPPLY CURVE TELECOMMUNICATIONS TOTAL COSTS TOTAL SALES TRANSITION ECONOMIES TRANSMISSION CAPACITY TRANSMISSION LOSSES UTILITIES VERTICAL LINE VOLATILITY VOLTAGE WAGES |
| spellingShingle |
ADMINISTERED PRICE ADVERSE EFFECT AGGREGATE LEVEL APPROACH AVAILABILITY AVERAGE PRICE BALANCE CAPACITY OF ELECTRICITY CEMENT CHEAPER ENERGY CHEMICAL MANUFACTURING COMMERCE COMMERCIAL DEMAND COMMODITY PRICES COMPETITIVENESS CONDITIONAL DEMAND CONSUMPTION OF ENERGY COOKING COST FUNCTIONS COST INCREASES CRUDE OIL CRUDE OIL PRICE DECLINE IN ENERGY CONSUMPTION DEMAND CURVE DEMAND DECLINES DEMAND ELASTICITY DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FUNCTION DEVELOPMENT STRATEGY DOMESTIC ENERGY DOMESTIC ENERGY SUPPLY DOMESTIC MARKET ECONOMETRICS ECONOMIC COMPETITIVENESS ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES ECONOMIC THEORY ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY OF SUBSTITUTION ELECTRICAL TRANSFORMERS ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS EMPLOYMENT END USERS END-USE END-USERS ENERGY ALTERNATIVES ENERGY BALANCE ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY COSTS ENERGY CRISIS ENERGY DEMAND ENERGY DEMAND ELASTICITIES ENERGY EFFICIENCY ENERGY EXPENDITURE ENERGY INPUT ENERGY INTENSIVE ENERGY MARKET ENERGY MARKETS ENERGY POLICIES ENERGY POLICY ENERGY PRICE ENERGY PRICES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENERGY SUPPLY ENERGY USE ENERGY USERS ENERGY-EFFICIENT DEVICES EXCESS SUPPLY EXPENDITURES EXPORTS FACTOR DEMAND FACTOR PRICE FACTOR PRICES FUEL FUEL CONSUMPTION FUEL PRICE FUELS GDP GENERATION GENERATION CAPACITY HIGH ENERGY INTENSITY HIGH ENERGY PRICES HOT WATER HYDROPOWER HYDROPOWER GENERATION IMPROVING ENERGY EFFICIENCY INCOME INDUSTRIAL ELECTRICITY PRICE INDUSTRIAL ENERGY CONSUMPTION INEFFICIENCY INPUT PRICES INTERNATIONAL NATURAL GAS MAJOR ENERGY SOURCE MARKET CONDITION MARKET PRICES MARKET REFORMS MARKET STRUCTURE NATURAL GAS OIL CRISIS POTENTIAL DEMAND POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER STATIONS POWER SYSTEM PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE CHANGES PRICE DISCRIMINATION PRICE ELASTICITIES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE ELASTICITY OF ENERGY DEMAND PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE POLICY PRICES OF COAL PRICING POLICY PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCT QUALITY PRODUCTION COSTS PRODUCTION LEVELS PUBLIC UTILITIES RESIDENTIAL CONSUMERS RESIDENTIAL CUSTOMERS RESIDENTIAL DEMAND RESIDENTIAL ELECTRICITY RESIDENTIAL ENERGY RESIDENTIAL ENERGY DEMAND RETAIL RETAIL PRICES SCALE EFFECT SECURITY OF ENERGY SUPPLY SPOT PRICE SUBSTITUTION SUBSTITUTION EFFECT SUPPLY COST SUPPLY CURVE TELECOMMUNICATIONS TOTAL COSTS TOTAL SALES TRANSITION ECONOMIES TRANSMISSION CAPACITY TRANSMISSION LOSSES UTILITIES VERTICAL LINE VOLATILITY VOLTAGE WAGES Iimi, Atsushi Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| geographic_facet |
Europe and Central Asia Eastern Europe |
| relation |
Policy Research Working Paper;No. 5167 |
| description |
Recent volatility in international
energy prices has revealed South Eastern Europe as one of
the most vulnerable regions to such external shocks. Under
the current global economic downturn, in addition, the
region s energy-intensive industries are faced with the
challenge of the weakening demand for their outputs. This
paper casts light on the relationship between the price and
the demand for energy. Based on firm level data, it is shown
that the price elasticity of industrial energy demand is
about -0.4 on average. There are a number of data issues to
interpret the results correctly. But Albania and Macedonia
are systematically found to have a relatively elastic demand
for energy on the order of -0.7 to -0.8. In these countries,
therefore, price adjustments would be one of the effective
policy options to balance demand with supply during the
period of energy crisis. In other countries, the demand
response would be much weaker; pricing cannot be the only
solution. Other policy measures, such as facilitation of
firm energy efficiency and improvements in the quality of
infrastructure services, may be required. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Iimi, Atsushi |
| author_facet |
Iimi, Atsushi |
| author_sort |
Iimi, Atsushi |
| title |
Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| title_short |
Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| title_full |
Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| title_fullStr |
Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| title_full_unstemmed |
Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe |
| title_sort |
price elasticity of nonresidential demand for energy in south eastern europe |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2010/01/11617936/price-elasticity-nonresidential-demand-energy-south-eastern-europe http://hdl.handle.net/10986/19951 |
| _version_ |
1764444139882020864 |
| spelling |
okr-10986-199512021-04-23T14:03:52Z Price Elasticity of Nonresidential Demand for Energy in South Eastern Europe Iimi, Atsushi ADMINISTERED PRICE ADVERSE EFFECT AGGREGATE LEVEL APPROACH AVAILABILITY AVERAGE PRICE BALANCE CAPACITY OF ELECTRICITY CEMENT CHEAPER ENERGY CHEMICAL MANUFACTURING COMMERCE COMMERCIAL DEMAND COMMODITY PRICES COMPETITIVENESS CONDITIONAL DEMAND CONSUMPTION OF ENERGY COOKING COST FUNCTIONS COST INCREASES CRUDE OIL CRUDE OIL PRICE DECLINE IN ENERGY CONSUMPTION DEMAND CURVE DEMAND DECLINES DEMAND ELASTICITY DEMAND FOR ELECTRICITY DEMAND FOR ENERGY DEMAND FUNCTION DEVELOPMENT STRATEGY DOMESTIC ENERGY DOMESTIC ENERGY SUPPLY DOMESTIC MARKET ECONOMETRICS ECONOMIC COMPETITIVENESS ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES ECONOMIC THEORY ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY OF SUBSTITUTION ELECTRICAL TRANSFORMERS ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRICITY GENERATION CAPACITY ELECTRICITY PRICE ELECTRICITY PRICES ELECTRICITY PRODUCTION ELECTRICITY SECTOR ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY TARIFFS EMPLOYMENT END USERS END-USE END-USERS ENERGY ALTERNATIVES ENERGY BALANCE ENERGY CONSUMERS ENERGY CONSUMPTION ENERGY COSTS ENERGY CRISIS ENERGY DEMAND ENERGY DEMAND ELASTICITIES ENERGY EFFICIENCY ENERGY EXPENDITURE ENERGY INPUT ENERGY INTENSIVE ENERGY MARKET ENERGY MARKETS ENERGY POLICIES ENERGY POLICY ENERGY PRICE ENERGY PRICES ENERGY SECURITY ENERGY SOURCE ENERGY SOURCES ENERGY SUPPLY ENERGY USE ENERGY USERS ENERGY-EFFICIENT DEVICES EXCESS SUPPLY EXPENDITURES EXPORTS FACTOR DEMAND FACTOR PRICE FACTOR PRICES FUEL FUEL CONSUMPTION FUEL PRICE FUELS GDP GENERATION GENERATION CAPACITY HIGH ENERGY INTENSITY HIGH ENERGY PRICES HOT WATER HYDROPOWER HYDROPOWER GENERATION IMPROVING ENERGY EFFICIENCY INCOME INDUSTRIAL ELECTRICITY PRICE INDUSTRIAL ENERGY CONSUMPTION INEFFICIENCY INPUT PRICES INTERNATIONAL NATURAL GAS MAJOR ENERGY SOURCE MARKET CONDITION MARKET PRICES MARKET REFORMS MARKET STRUCTURE NATURAL GAS OIL CRISIS POTENTIAL DEMAND POWER POWER CONSUMPTION POWER PLANTS POWER SECTOR POWER STATIONS POWER SYSTEM PRICE ADJUSTMENT PRICE ADJUSTMENTS PRICE CHANGE PRICE CHANGES PRICE DISCRIMINATION PRICE ELASTICITIES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE ELASTICITY OF ENERGY DEMAND PRICE INCREASES PRICE LEVEL PRICE OF ELECTRICITY PRICE POLICY PRICES OF COAL PRICING POLICY PRIMARY ENERGY PRIMARY ENERGY SUPPLY PRODUCT QUALITY PRODUCTION COSTS PRODUCTION LEVELS PUBLIC UTILITIES RESIDENTIAL CONSUMERS RESIDENTIAL CUSTOMERS RESIDENTIAL DEMAND RESIDENTIAL ELECTRICITY RESIDENTIAL ENERGY RESIDENTIAL ENERGY DEMAND RETAIL RETAIL PRICES SCALE EFFECT SECURITY OF ENERGY SUPPLY SPOT PRICE SUBSTITUTION SUBSTITUTION EFFECT SUPPLY COST SUPPLY CURVE TELECOMMUNICATIONS TOTAL COSTS TOTAL SALES TRANSITION ECONOMIES TRANSMISSION CAPACITY TRANSMISSION LOSSES UTILITIES VERTICAL LINE VOLATILITY VOLTAGE WAGES Recent volatility in international energy prices has revealed South Eastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region s energy-intensive industries are faced with the challenge of the weakening demand for their outputs. This paper casts light on the relationship between the price and the demand for energy. Based on firm level data, it is shown that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues to interpret the results correctly. But Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services, may be required. 2014-09-02T21:33:26Z 2014-09-02T21:33:26Z 2010-01 http://documents.worldbank.org/curated/en/2010/01/11617936/price-elasticity-nonresidential-demand-energy-south-eastern-europe http://hdl.handle.net/10986/19951 English en_US Policy Research Working Paper;No. 5167 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Eastern Europe |