Abstract
In this study we analyze the dynamics of industrial electricity consumption in Russia over the period 1998—2002. The unique firm-level database with information on electricity consumption was built for this purpose. By applying two models of electricity demand to Russian data we estimate price elasticity of electricity demand to be in interval -0.2 — -0.4 which is close to estimations of elasticity for US and European firms and goes opposite to popular beliefs that electricity demand is inelastic at low prices. The data also indicates that on average over these five years the industrial electricity consumption increases by 30%. We explain this by both growth of production and the relative decline in electricity price. Furthermore, on average electricity consumption per 1 ruble of real output declined. We also have found a substantial negative impact of new investments in fixed assets on electricity intensity of output. We interpret these results as an evidence of the decline in electricity intensity of Russian industrial production.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
