RESIDENTIAL DEMAND FOR ELECTRICITY - THE CASE OF GREECE

This paper examines the determinants of residential electricity consumption in Greece over the period 1961-86. The paper presents first a brief description of the evolution of residential electricity consumption. Then, it proceeds in the estimation of elasticities of residential demand for electricity using a single equation model with the ridge regression method. The paper concludes that (i) the residential demand for electricity is price inelastic and income elastic; (ii) there is high substitutability between electricity and LPG; (ii) during the examined period the number of consumers played a very important role in the expansion of electricity consumption in Greece; and (iv) there is no regional variation in residential electricity demand.