The Impacts of Metering and Climate Conditions on Residential Electricity Demand : The Case of Albania

Albania is among the most vulnerable countries to external energy shocks and climatic conditions, because of its high dependency on hydropower for electricity. Given highly volatile international energy prices and expected global warming, it is becoming increasingly important to manage the demand for electricity. However, the country has long been faced with a significant problem of electricity metering. About one-third of total energy is lost for technical and nontechnical reasons. This paper estimates the residential demand function by applying a two-stage system equation method for an endogenous censored variable, because the lack of metering makes the electricity consumption partially observable for the econometrician. It is found that metering is important to curb non-essential electricity use by households. The electricity demand could also be reduced by raising the first block rate and lowering the second block rate and the threshold between the two blocks. In addition, weather conditions and home appliance ownership would affect the demand for electricity. But the latter looks more influential than the former.

Bibliographic Details

Main Author:	Iimi, Atsushi
Language:	English
Published:	2011-01-01
Subjects:	ACCESS TO ELECTRICITY, AIR, AIR CONDITIONERS, ALTERNATIVE ENERGY, ALTERNATIVE ENERGY SOURCE, ANNUAL PRECIPITATION, APPROACH, AVAILABILITY, AVERAGE COST PRICING, AVERAGE PRICE, AVERAGE TEMPERATURE, BOILER, BOILERS, CLIMATE, CLIMATE CHANGE, CLIMATE CHANGE VULNERABILITY, CLIMATE CHANGES, CLIMATIC CONDITIONS, CLIMATIC IMPACTS, CONDITIONERS, CONSUMER BEHAVIOR, CONSUMER DEMAND, CONSUMER RESPONSE, CONSUMPTION OF ENERGY, COST OF PRODUCTION, DEMAND ELASTICITY, DEMAND FOR ELECTRICITY, DEMAND FOR ENERGY, DEMAND MANAGEMENT, DISTRIBUTION COMPANY, DISTRIBUTION LOSSES, DISTRIBUTION NETWORK, DISTRIBUTION SYSTEM, DISTRIBUTIONAL IMPACTS, DOMESTIC PRODUCTION, DONOR COMMUNITY, DROUGHT, ECONOMIC GROWTH, ECONOMIC THEORY, EFFICIENT ENERGY USE, ELECTRIC APPLIANCES, ELECTRICITY, ELECTRICITY COMPANY, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY DISTRIBUTION, ELECTRICITY GENERATION, ELECTRICITY GENERATION CAPACITY, ELECTRICITY PRICING, ELECTRICITY PRIVATIZATION, ELECTRICITY PRODUCERS, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRICITY TARIFF, ELECTRICITY USE, EMISSIONS, EMISSIONS REDUCTION, END-USE, ENERGY CONSUMPTION, ENERGY DEMAND, ENERGY ECONOMICS, ENERGY EFFICIENCY, ENERGY PLANNING, ENERGY POLICY, ENERGY PRICES, ENERGY SECURITY, ENERGY SOURCES, ENERGY STRATEGY, ENERGY USERS, ESSENTIAL USE, FINANCIAL SUSTAINABILITY, FUEL, FUEL EFFICIENCY, GAS, GAS USAGE, GAS USE, GLOBAL WARMING, HOUSEHOLD ELECTRICITY TARIFF, HUMIDITY, HYDROPOWER, IMPORTS, IMPROVEMENTS IN ENERGY EFFICIENCY, INCOME, INCOME HOUSEHOLDS, LAND ECONOMICS, LIQUEFIED PETROLEUM GAS, LIVING CONDITIONS, LIVING STANDARDS, LOAD SHEDDING, LOWER PRICES, MARGINAL PRICE, PEAK DEMAND, PEAK LOAD, PETROLEUM, PETROLEUM GAS, POLICY IMPLICATIONS, POLICY MAKERS, POWER COMPANY, POWER CONSUMPTION, POWER DEMAND, POWER SECTOR, PP, PRECIPITATION, PRICE EFFECT, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE-ELASTIC, RAINFALL, RESIDENTIAL DEMAND, RESOURCE ECONOMICS, TARIFF STRUCTURE, TEMPERATURE, TOTAL CONSUMPTION, TOTAL COST, UTILITIES, VOLATILE INTERNATIONAL, WATER HEATING, WEATHER CONDITIONS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110105083850 https://hdl.handle.net/10986/3293
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