Residential demand for electricity

Short- and long-run responses by households to changes in the price of electricity are estimated using data which permit measurement of the marginal price of electricity, the infra-marginal demand charge, and estimates of household appliance stocks. The price elasticities of high- and low-level users of electricity are compared. The theoretical bias in price elasticity estimates resulting from neglect of the infra-marginal demand charge is shown to be empirically insignificant.