Income and price elasticity of residential electricity demand in Latin America and the Caribbean: a meta-analysis and meta-regression analysis

Abstract

PurposeThis paper aims to identify the income and price elasticities of demand for residential electricity in Latin America and the Caribbean (LAC) and to verify their main determinants.Design/methodology/approachMeta-analysis and meta-regression methods were applied. After collecting and filtering journal articles, the authors obtained a sample composed of 76 studies covering 1979–2020.FindingsThe results show that the LAC's income elasticity is approximately 0.20 and 0.92 for the short and long term, respectively. The LAC's price elasticity is approximately −0.37 and −0.46 for the short and long term, respectively. Furthermore, the estimates are affected by the data structure, the estimation method used and the sampling period.Originality/valueThe authors close a gap in the literature by analyzing the price and income elasticities of demand through meta-analysis and meta-regression.