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