An Experiment of Own-Price Elasticity Estimation Non-Residential Electricity Demands in the U.S

This paper uses an experiment to identify what modelling decisions significantly affect estimates of own-price elasticity for non-residential electricity demands in the United States (U.S.). Based on ~175,000 panel data analyses of 10,944 monthly observations by state available from the Energy Information Administration for 2001-2019, these decisions are parametric specification, estimation method, and treatment of cross-section dependence. As most of the voluminous elasticity estimates are between 0.0 and -0.2, price-induced conservation is likely modest, justifying continued policy support for energy efficiency standards and demand-side management in the U.S. path to deep decarbonization