Asymmetric price responses of residential energy demand in Ontario
Canadian Journal of Economics , Volume 29 - Issue SPEC. ISS. 1
Once account is taken of inter-fuel substitution, there appears to be little remaining evidence of significantly different energy demand responses to price increases and to price decreases. However, there is clear evidence of different responses to price levels and price changes. Capital stocks appear to be an important determinant of energy demand, although price asymmetries are no more evident here when these variables are excluded from the specification. Future research in this area could usefully take account of the endogeneity of these variables.