Electricity reform, tariff and household elasticity in Turkey


Cetinkaya M., BAŞARAN A. A. , BAĞDADİOĞLU N.

UTILITIES POLICY, vol.37, pp.79-85, 2015 (Peer-Reviewed Journal) identifier identifier

  • Publication Type: Article / Article
  • Volume: 37
  • Publication Date: 2015
  • Doi Number: 10.1016/j.jup.2015.06.003
  • Journal Name: UTILITIES POLICY
  • Journal Indexes: Science Citation Index Expanded, Social Sciences Citation Index, Scopus
  • Page Numbers: pp.79-85
  • Keywords: Electricity demand elasticity, Household demand, Electricity reform, RESIDENTIAL DEMAND, PRICE, CONSUMPTION

Abstract

This paper assesses the progress of Turkish electricity reform with a particular emphasis upon tariff structure and elasticity which are essential components of a successful reform. This is done through estimating price and income elasticity using the pooled data approach for the first time for the Turkish households covering the period of 2003-2012. The results strongly suggest that both the sector regulator EMRA and the private distribution companies ought to take into consideration the households' characteristics while designing electricity tariff following the envisaged introduction of cost-based tariff after 2015. (C) 2015 Elsevier Ltd. All rights reserved.