Energy Efficiency

, Volume 12, Issue 3, pp 667–680 | Cite as

An experimental investigation of price elasticity in electricity markets using a response surface methodology

  • Abdullah Asuhaimi Bin Mohd Zin
  • Mehdi MoradiEmail author


For the purposes of government policy concerning energy security, optimal taxation, and climate change, precise estimates of the effective factors in price elasticity of electricity demand are of principal importance. In this regard, this paper explores the effect of different factors including proportion of income spent-level, consumer academic-level, demand-types, demand time, possibility of postponing demand-level, price-level, demand-level, and awareness of participation benefits-level on price elasticity of electricity demand for Iran power system. To achieve this, a nonlinear-empirical model based on response surface methodology is proposed. Thereafter, these factors were prioritized based on their effect on price elasticity. Analysis results reveal that proportion of income spent-level has the most significant effect on the price elasticity of electricity demand while consumer academic-level has the least effect. These results could be applied by policy makers as a tool in making decisions on how to set the price of electricity.


Statistical analysis Strategic planning Price elasticity of demand Response surface methodology Empirical model 



The authors sincerely would like to express their appreciation to the Universiti Teknologi Malaysia (UTM) for supporting this work through FRGS Grant (Vote No: 4F911) and Ministry of Higher Education (MOHE) for providing funds to carry out the research reported in this paper.


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Copyright information

© Springer Science+Business Media B.V., part of Springer Nature 2018

Authors and Affiliations

  • Abdullah Asuhaimi Bin Mohd Zin
    • 1
  • Mehdi Moradi
    • 1
    Email author
  1. 1.Department of Electrical Power Engineering, Faculty of Electrical EngineeringUniversiti Teknologi Malaysia (UTM)Johor BahruMalaysia

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