Price Elasticity of Electricity Demand in France

Abstract

The idea that competitive balance increases the utility of fans, and therefore their spending and the revenue of professional clubs, lies at the heart of sports economics in general and the economics of football in particular. This notion of competitive balance is often invoked to explain the decisions of professional leagues to change the rules of competitions or the distribution of TV rights. However, the empirical literature shows that the relationship between competitive balance and fan demand is far from obvious. In this paper, we examine the idea of competitive balance as perceived by football fans. In the case of Ligue 1, it is mainly explained by medium-and long-term uncertainty, while in the case of the Champions League it is more a matter of long-term suspense. But uncertainty over the outcome is far from being the only factor explaining the demand for football since around 30% of fans report that they would always be willing to attend or watch games even in the hypothetical case that there is no suspense left.

A comprehensive study to estimate income and price elasticities of household electricity consumption using Auto-metrics

“…Since the 1990s, the EU power market's wholesale and some retail aspects have gradually been liberalized. Auray et al [ 14 ] describe this as “the world's largest cross-jurisdiction transformation of the electricity sector,” resulting from integrating different state-level or national electrical markets and liberalizing the European Union's electricity market. However, they note skepticism regarding the consumer benefits of liberalization.…”

Electricity interconnection with intermittent renewables

“…20 For example Auray et al (2018) estimate the long-run elasticity for the residential sector in France ranging from -1.4 to -1.8. Chang et al (2019) estimate the elasticity for the industrial sector for OECD countries ranging from -0.1 to -0.5.…”

Risk-adjusted Social Discount Rates

“…To be consistent with the examples discussed thereafter, our calculation is based on the French economy but can easily be applied to other countries. Price-elasticity of residential demand in that country is about 1.5 (Auray et al, 2019), whereas one can consider that the income-elasticity of demand is about 0.4. 11 The relation 13 calibrated using these parameters indicates that the beta is quite low, between 0.27 and 0.4 depending on the price-elasticity of supply.…”