Household electricity demand in Latin America and the Caribbean: A meta-analysis of price elasticity

Studying the price elasticity of demand is essential when considering rate policies in the electricity sector. This research aims to perform a meta-analysis and a meta-regression of the price elasticity of electricity demand for the residential sector in Latin American and Caribbean countries. Results show that the true value of the shortterm price elasticity is between-0.197 and-0.468 and, for the long-term, is between-0.252 and-0.331. Findings differ substantially when studies are classified by their quality in econometric procedures. The longterm price elasticity seems to be lower than estimates found for other regions.

Automated summary

This research examines the price elasticity of electricity demand for the residential sector in Latin American and Caribbean countries through a meta-analysis and meta-regression. The study finds that the short-term price elasticity ranges from -0.197 to -0.468, and the long-term price elasticity ranges from -0.252 to -0.331. The quality of econometric procedures significantly affects the results, and the long-term price elasticity appears to be lower compared to other regions.