The demand for electricity in Israel

Michael Beenstock*, Ephraim Goldin, Dan Nabot

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

112 Scopus citations

Abstract

Quarterly data for Israel are used to compare and contrast three dynamic econometric methodologies for estimating the demand for electricity by households and industrial companies. These are the Dynamic Regression Model and two approaches to cointegration (OLS and Maximum Likelihood). Since we find evidence of seasonal unit roots in the data we also test for seasonal cointegration. We find that the scale elasticities are similar in all three approaches but the OLS price elasticities are considerably lower. Moreover, OLS suggests non-cointegration. The paper concludes by stochastically simulating the DRMs to calculate upside-risk in electricity demand.

Original languageEnglish
Pages (from-to)168-183
Number of pages16
JournalEnergy Economics
Volume21
Issue number2
DOIs
StatePublished - 1 Apr 1999

Keywords

  • Electricity consumption
  • Israel
  • Seasonal cointegration
  • Upside-risk

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