The Evaluation of the Impact of Price changing on Energy Demand: Quantile Regression Approach

This paper investigates the effects of price changing of housing energy and transport fuels on household demand in 10 separate quantiles during the years 2003-2017 via a quantile regression approach.  The results indicate that the sign of the own price elasticities is theoretically expected. These two mentioned categories of goods in all consuming quantiles are Hicks-Allen Substitutes and while the price of one of these two categories increases and if also this price increase is accompanied by  consumer compensation, it is expected that the demand for the other category of goods will increase. In addition, the two categories housing energy and transport fuels have appeared as luxury goods in all consuming quantiles. Also, the highest percentage of consumption reduction due to a one percent increase in fuel price, after consumer compensation, is related to quantile 1 which means they were the least consuming households, and the lowest percentage is related to quantile 8, which is the most consuming quantile. But the least percentage of housing energy consumption reduction due to a one percent increase in its price, after consumer compensation, has occurred in low consuming quantile 2 and the most one has occurred in high consuming quantile 7.