Demand Function for Industrial Electricity: Evidence from South Korean Manufacturing Sector

被引:0
作者
Kim, Hyo-Jin [1 ]
Kim, Gyeong-Sam [1 ]
Yoo, Seung-Hoon [1 ]
机构
[1] Seoul Natl Univ Sci & Technol, Grad Sch Energy & Environm, Dept Energy Policy, 232 Gongreung Ro, Seoul 01811, South Korea
关键词
industrial electricity; demand function; price elasticity; least absolute deviations; economic benefits; ASYMMETRIC PRICE RESPONSES; UNDERLYING ENERGY DEMAND; ECONOMIC VALUE; ELASTICITIES; CONSUMPTION; TRENDS; INCOME;
D O I
10.3390/su11185112
中图分类号
X [环境科学、安全科学];
学科分类号
08 ; 0830 ;
摘要
Electricity is a crucial input to the industrial production of South Korea. Estimating the demand function for electricity in the manufacturing sector is an important task because electricity consumption in the manufacturing sector accounts for 56.3% of total electricity consumption in South Korea. Thus, this article tries to estimate the demand function for industrial electricity in the manufacturing sector of South Korea using cross-sectional data for analyzing the influence of manufacturing firms' characteristics. To this end, 946 observations collected from a nationwide survey of manufacturing firms in 2018 are used and analyzed. As a robust approach, the least absolute deviations estimation method is applied to obtaining the demand function. The results show that the price elasticity and the sales amount elasticity of the industrial electricity demand are estimated to be -0.9206 and 0.2568, respectively, which are statistically significant at the 1% level. Furthermore, the economic benefits of industrial electricity consumption are computed to be 1.46 times as great as the price of electricity. The results of this study can be utilized in policy planning, making, and evaluation.
引用
收藏
页数:11
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