TY  - JOUR
TT  - Upward Sloping Demand for a Normal Good?  Residential Electricity in Arkansas
AU  - Fullerton, Thomas M.
AU  - Resendez, İleana M.
AU  - Walke, Adam G.
PY  - 2015
DA  - December
JF  - International Journal of Energy Economics and Policy
JO  - IJEEP
PB  - İlhan ÖZTÜRK
WT  - DergiPark
SN  - 2146-4553
SP  - 1065
EP  - 1072
VL  - 5
IS  - 4
KW  - Residential Electricity Consumption
KW  - Regional Economics
KW  - Business Economics
N2  - This study analyzes residential electricity demand in the state of Arkansas using an error-correction approach that examines both long-run and short-run dynamics. As in prior studies, results indicate that higher electricity prices reduce consumption in the long-run, but not in the short-run. With respect to variations in household income, residential electricity is treated as a normal good.  The long-run income elasticity estimate is about twice as large as the short-run estimate. It is suggested that the muted short-run responses to price and income variables may reflect limited capacity to adjust the stock of electricity-consuming household devices over the short-term.  More surprisingly, households are found to treat electricity as a normal good in the short-run, but have an upward sloping demand curve associated with it. The overall results suggest that increasing generating capacity in Arkansas will be feasible using the standard approach of incremental rate increases.
UR  - https://dergipark.org.tr/tr/pub/ijeeep/issue//351038
L1  - https://dergipark.org.tr/tr/download/article-file/361573
ER  -