Abstract
This paper analyzed residential demand for electricity in 26 Brazilian states from 1991 to 2014. Our approach was based on a two-step procedure. First, a demand function controlling price- and income-endogeneity was estimated. Next, we employed a stochastic frontier model to obtain estimates of the energy efficiency indicators. Our main results showed that demand is price-inelastic and income-elastic. Moreover, we found that Brazilian states have been wasting a non-negligible amount of energy. Thus, we concluded that policies intended to reduce energy waste should focus preferentially on increasing the level of consumption efficiency, leaving prices as an ancillary tool.
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Soares, T. C., Lopes, L. S., & da Cunha, D. A. (2017). A eficiência do consumo residencial de energia elétrica no Brasil. Economia Aplicada, 21(3), 503–523. https://doi.org/10.11606/1413-8050/ea117421
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