ISSN 1300-1868
 

Original Research (Original Article) 


The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey

A.Ali KOÇ, Gülden Bölük, Fatma Banu Beyaz Sipahi.

Abstract
This study analyzes the welfare impact of the residential electricity tariff escalation initiated in July 2008 on households in Turkey. Empirical analysis consists of estimation of household electricity demand using TurkStat “2007, 2008 and 2009 budget survey" data and Hicksian compensating variation of welfare. The estimated income elasticities by income strata were found to be close to each other, confirming that electricity is a necessity good and the magnitude of the elasticities decreases as income goes up (ranging from 0.74 to 0.91 for income strata). The magnitude of the income elasticities by income strata was found to be very low compared to the long-run income elasticities in previous time series studies. The estimated income elasticity by income strata and the mean value of the Marshallian long-run own-price elasticity for residential electricity obtained from previous time series models were used to obtain Hicksian own-price elasticities using Slutsky decomposition for each income strata. The welfare measure which relied on Hicksian compensating variation indicated that welfare loss of households from 2007 to 2009 was around 9-10 percent by income strata as compared to the situation before tariff adjustment. It is expected that welfare losses would be greater if the analysis period were extended to 2012.

Key words: Residential electricity demand, income elasticity of electricity demand, welfare impact of electricity price escalation, Slutsky decomposition. JEL Classification: D12, D13, D60.



Türkiye’de Tarife Düzenlemesi ve Ekonomik Krizin Hanehalkı Elektrik Talebi Üzerine Etkisi

Ozet
Bu çalışma, Türkiye’de Temmuz 2008 yılında tırmanmaya başlayan konut elektrik tarifesinin hanehalkının refahı üzerindeki etkisini analiz etmektedir. Ampirik analiz, TÜİK “2007, 2008 ve 2009 bütçe anket” verilerini kullanılarak hanehalkı elektrik talebinin ve Hicksgil telafi edici refah değişiminin tahmininden oluşmaktadır. Gelir gruplarına göre hesaplanan gelir esnekliklerinin birbirlerine yakın bulunması elektriğin zorunlu bir mal olduğunu ve gelir artarken (gelir grupları için 0.74-0.91 arası değişen) esneklik büyüklüğünün azaldığını doğrulamaktadır. Gelir gruplarına göre hesaplanan gelir esnekliklerinin büyüklüğü, daha önceki zaman serisi çalışmalarında hesaplanan uzun dönem gelir esnekliklerinden çok daha düşük bulunmuştur. Gelir gruplarına göre hesaplanan gelir esneklikleri, önceki zaman serisi çalışmalarından elde edilen elektriğin Marshallian uzun dönem fiyat esnekliği ve her bir gelir grubu için Slutsky ayrıştırması kullanılarak Hicksian fiyat esneklikleri elde edilmiştir. Hiksgil telafi edici refah değişimine göre, tarife düzenlemesinden önceki durumla karşılaştırıldığında gelir gruplarına göre 2007-2009 döneminde hanehalkının refahı %9-10 civarında azalmıştır. Eğer analiz dönemi 2012 yılına uzatılırsa, refah kayıpları çok daha yüksek oranlara ulaşırdı.

Anahtar Kelimeler: Hanehalkı elektrik talebi, elektrik talebinin gelir esnekliği, elektrik fiyat artışının refah etkisi, Slutsky ayrıştırması. JEL Sınıflaması: D12, D13, D60.


 
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How to Cite this Article
Pubmed Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim. 2015; 26(97): 1-22. doi:10.5455/ey.35714


Web Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. http://www.ekonomikyaklasim.org/?mno=178449 [Access: October 20, 2019]. doi:10.5455/ey.35714


AMA (American Medical Association) Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim. 2015; 26(97): 1-22. doi:10.5455/ey.35714



Vancouver/ICMJE Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim. (2015), [cited October 20, 2019]; 26(97): 1-22. doi:10.5455/ey.35714



Harvard Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi (2015) The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim, 26 (97), 1-22. doi:10.5455/ey.35714



Turabian Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. 2015. The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim, 26 (97), 1-22. doi:10.5455/ey.35714



Chicago Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. "The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey." Ekonomik Yaklasim 26 (2015), 1-22. doi:10.5455/ey.35714



MLA (The Modern Language Association) Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi. "The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey." Ekonomik Yaklasim 26.97 (2015), 1-22. Print. doi:10.5455/ey.35714



APA (American Psychological Association) Style

A.Ali KOC, Gulden Boluk, Fatma Banu Beyaz Sipahi (2015) The Impact of Economic Crisis and Tariff Adjustment on Residential Electricity Demand in Turkey. Ekonomik Yaklasim, 26 (97), 1-22. doi:10.5455/ey.35714