Date: Tuesday, 25 November 2025, at 12:15 pm
Venue: Seminar Room Bruguier Pacini, DEM
Speaker and Title:
Elena Sestini (University of Siena)
The Elasticity of Residential Electricity Demand under Time-of-Use Tariffs: Evidence from Micro Data
Abstract:
Residential electricity demand is shaped by a variety of behavioral, structural, geographic, and demographic factors and, as such, it is highly context dependent. This study provides a novel contribution by estimating the price elasticity of electricity demand for Italian households under time-of-use (ToU) tariffs.
We first compute the total short-run elasticity of demand and then further investigate substitution patterns across hours of the day. Our results suggest that while electricity consumption is relatively inelastic to price changes, several contextual factors help explain consumption patterns.
We also find some price responsiveness across peak and off-peak hours. Based on preliminary evidence, we believe that raising consumer awareness and providing clearer information on prices may be effective in promoting electricity savings and shifting demand away from peak periods.