Brazil's electric energy sector is distinguished by its diverse energy matrix, with a significant emphasis on renewable sources, and a sophisticated regulatory environment designed to maintain stability and efficiency across the country. Understanding consumer demand elasticity in this context sheds light on market dynamics and operational intricacies in a country characterized by its regional economic and climatic diversity.
The assessment of demand elasticity among various consumer types in response to price variations of goods and services is a crucial tool for anticipating the potential impacts of changes in tax policy and pricing strategies implemented by corporations. This analysis is particularly pertinent in the residential energy sector for two primary reasons: (i) the significance of energy provision on regional economic growth and development patterns; and (ii) the variance in residential energy demand responses based on income levels and regional demographic structures.
The database will be developed from the microdata of the Pesquisa de Orçamentos Familiares (POF, or Household Budget Survey) for the years 2017-2018, made by the Brazilian Istitute of Geography and Statistics (IBGE). The survey’s unit of investigation is the household and is conducted through probabilistic sampling, and contains information about the household’s electricity consuption, family income, and property details. The survey’s structure allows for disaggregated results at the level of the nine metropolitan region in urban areas. In this research, we will adopt the most recent availability data from years 2017 and 2018. In order to analyse the impact in different regions and levels of income, the research will be disaggregated from five macro regions of Brasil (North, Northeast, South, Southeast and Midwest) and also from five income quintiles.
This study is poised to dissect the intricate relationship between price, income, and regional variances as they influence residential energy demand in Brazil. By harnessing POF 2017-2018 data, Engel curves, and partial equilibrium models, we anticipate delineating the diverse reactions of consumer groups to economic changes. The objective is to provide an in-depth analysis of demand elasticity within Brazil's residential energy sector, offering insights that are crucial for accurately forecasting energy demand. Our findings aim to shed light on the nuanced ways in which demographic and regional distinctions shape consumption patterns.
This research is dedicated to unraveling the effects of income variations on energy consumption within Brazil's diverse macroregions, highlighting the unique aspects of each area. Our detailed analysis aims to first delineate specific regional consumption patterns, providing a clearer understanding of how uniform changes in the energy sector could impact different areas. Secondly, by examining the demographic profiles of families and their influence on energy demand in each region, we seek to uncover how the scale of demand varies across the country. The anticipated findings are expected to deepen our comprehension of the energy sector's dynamics, focusing on the interplay between consumer behavior, demographic factors, and energy demand across various regions. This approach aims to enhance the accuracy of forecasting future changes in energy demand, thereby offering a nuanced examination of the sector's complexities.
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