An econometric analysis of the Swedish industrial
electricity demand
Abstract: The purpose of this thesis is to derive and estimate a demand function for
Swedish industrial electricity use, and to investigate changes in demand
patterns over the time period 1960 - 2006. The thesis employs data on the
industrial electricity use, electricity and oil prices and data on the
value of production, and specifies a log linear function which is used
running OLS regressions. The data are divided into two time periods, 1960 -
1992 and 1993 - 2006 in order to test for structural change. The demand for
electricity is during the first time period highly dependent on total
industrial production, while during the second period that relationship has
weekend substantially. The explanation is mainly a more efficient use of
electricity. The own price elasticity of electricity demand and the cross
price elasticity of demand have gone from being insignificant in the first
time period to statistically significant in the second time period,
implying that industrial electricity demand has become more price sensitive
over time.
CLICK HERE TO DOWNLOAD THE WHOLE ESSAY. (in PDF format)