Swiss residential demand for electricity

A residential demand for electricity is estimated using aggregate data at a city level for 40 Swiss cities over the period 1987 to 1990. For this purp ose, a log linear stochastic equation for electricity consumption was estim ated. The empirical analysis has highlighted some of the characteristics of the Swiss residential electricity market. The price elasticity was estimat ed to be -0.30, which shows a moderate responsiveness of electricity consum ption to changes in prices. This result indicates a price-inelastic demand for electricity with a lower price elasticity than those reported in previo us studies. From an energy policy point of view this result implies that th ere is little room for discouraging residential electricity consumption usi ng price increases.