Download Elements of the Swiss Market for Electricity by Massimo Filippini PDF

By Massimo Filippini

1.1 financial matters to be analyzed This learn examines components of the Swiss marketplace for electrical energy: the residential electrical energy call for via time-of-use and the price constitution of municipal electrical energy distribution utilities. The empirical result of call for and value elasticities let the research of attention-grabbing fiscal and coverage matters resembling the desirability of a common creation of time-of-use pricing for residential consumers, the desirability of side-by-side festival within the distribution of electrical energy and, extra normally, the industrial results of a discount of the weight issue and of mergers among electrical distribution utilities on expenses. Desirability of time-of-use pricing within the final decade there was an intensifying debate in Switzerland approximately efficacy of electrical energy price reforms so as to enhance the potency of electrical energy use. This debate used to be initiated via major occasions. First, there has been an enormous development of electrical energy intake. moment, the Chernobyl twist of fate in 1986 aroused common public predicament concerning the difficulties linked to nuclear strength and waste disposal. for that reason, in 1991 the Swiss voted, in a referendum, a lO-year moratorium at the 2 building of recent nuclear energy vegetation. in addition, plans to extend construction of hydroelectric energy (construction of recent dams or increasing present ones) were stiffly hostile through environmental teams. those advancements have continually curtailed capability enlargement of household electrical energy provide. hence, Switzerland throughout the wintry weather has to import electrical energy from international countries.

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2. 3 that a solution to these data problems, that are common in electricity demand analysis, consists of the estimation of a conditional demand system using aggregate consumption data. 1 presents some common functional forms employed in studies on electricity demand by time-of-use. 1, the first one seems to be the least attractive because it needs severe restrictions on elasticities to be consistent with consumer demand theory. The second and the third approaches are not easy to estimate and are not consistent with the first stage of a two-stage budgeting process, although homotheticity is not imposed.

The double-logarithmic demand system and the Rotterdam demand system are examples of applications of this first approach. The main shortcoming of this approach is that the functional forms of the demand equations are not adequate in reflecting the properties of demand functions. The second method of deriving demand systems involves the specification of a direct utility, indirect utility or expenditure function. As presented above, the solution of the constrained utility maximization problem generates a set of demand equations that automatically satisfy the properties of demand functions, and whose functional form depends on the form of the utility function.

The econometric literature on electricity demand in Switzerland consists of three main studies. The first study analyzes residential electricity demand with data at a national level, see Carlevaro and Spierer (1983) and Spierer (1988). The second study examines residential electricity demand using data at a household level, see Dennerlein (1990). However, both studies do not analyze the electricity demand by time-of-use; they aggregate consumption during the peak and off-peak periods. The third study analyses the residential electricity demand by time-of-use using data at a city level, see Filippini (1995b).

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