Lessons from Regional Electricity Demand Change following Natural Disasters in Japan

Abstract

AbstractAnalyzing the impact of electricity price changes on electricity demand helps in energy supply planning. This study estimated the electricity demand functions of households and industries, as well as the impact of electricity price hikes on electricity demand following natural disasters. We found that structural changes occurred in various regions' electricity demand's price elasticity following natural disasters. Furthermore, the results showed that the decrease in consumer surplus associated with higher electricity prices was more significant in regions that depended on nuclear power. These results have important implications for regional energy policies.