Using a Computable General Equilibrium Model to estimate Electricity Demand Price Elasticity in Iran

Based on the CGE model and according to Social Accounting Matrix (SAM) 1380, this study simulates the impact of electricity price adjustment on demand for electricity, and the simulation results show the range of electricity elasticity of different consumers. The elasticity of Residential sector is relatively larger. However, the absolute values of the price elasticity are less than one. Furthermore, this paper quantitatively analyses the price elasticity of different categories of users, which are classified to Resident, Agriculture, Industry and Services. The elasticity absolute value of Residents is around (1.02-0.87), that of Agriculture is around (0.013-0.015), that of Industry is around (0,013-0.032) and that of Services is around (0.02-0.031) in different scenarios. The analytical results of this paper can provide corresponding support for the formulation of electricity pricing mechanisms for Iran.

کلیدواژه ها:

Electricity price ، Price elasticity ، CGE