Estimating Short-time and Long-time Effect of Electricity Price Shocks on Ahvaz Residential and Commercial Electricity Demands Based on ARDL

The main goal of this study is investigating and assessing the reaction of residential and commercial electricity towards electricity prices shocks in Ahvaz based on correlative ARDL method from 2002 to 2012. In order to investigate the effect of electricity prices changes, Hodrick–Prescott filter (1980) was applied. The results of estimating demand’s function showed that electricity is assumed as a high-elasticity item for residential and commercial consumers in Ahvaz. Besides, comparing residential and commercial prices elasticity show that residential section consumers react more towards electricity shocks prices and commercial section consumers react more towards the prices of electricity prices. In other words, the policies like subsides purposefulness had more effects on residential section. Investigating the effect of temperature also shows that the increase in temperature leads to the increase in consuming electricity in Ahvaz residential and commercial areas. Investigating the error correction coefficient shows that the anticipatory and adaptation power of the residential consumers is more than commercial users in Ahvaz.