SP 1987-03

Residential Demand for Electricity and Pricing Policy Implications in a Developing Economy: The Philippine Case

Utilizing data on MERALCO residential consumers, this paper reveals that residential demand for electricity is responsive to its own price, the price of electricity consuming equipment, environmental variables and to a certain extent, income. Positive marginal price elasticity is explained in terms of consumer's response to signals given by a structure of subsidized process. Some pricing policy implications are derived.

Authors: Francisco, Clodualdo
Keywords: electricity and power
Focus Area: Infrastructure, transportation and communication
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