Income and price elasticities of household electricity demand: A comparative systematic review of aggregated and disaggregated data studies

Abstract

This systematic review investigates disparities in research coverage and assesses the implications of income and price elasticities on household electricity demand. By analyzing studies across various regions and income groups, it aims to uncover imbalances in research distribution and understand their impact on energy policy development. The review employs a systematic approach, analyzing peer-reviewed and gray literature from Scopus, Web of Science, and Google Scholar databases from 1980 to 2023. It addresses four research questions: regional and income group classifications, differences in income elasticities, variations in price elasticities, and the accuracy and variability of household electricity demand elasticity estimates between aggregated and disaggregated data studies. The review reveals significant imbalances, with the Middle East, North Africa, and Sub-Saharan Africa underrepresented, while Europe and Central Asia exhibit robust research. Consistent inelasticity in electricity demand is observed across contexts and timeframes. High-income countries dominate this research, leading to a lack of empirical studies in low-income regions, hindering tailored interventions. Understanding short- and long-run elasticities is crucial for effective demand forecasting and policy design. This review uniquely compares income and price elasticities from aggregated and disaggregated data studies, highlighting regional research disparities and their implications for energy policy. It emphasizes the need for inclusive, context-specific investigations to foster sustainable development and equitable energy access globally.