We use five parametric specifications and monthly data for the lower 48 states in 2001–2019 to document that industrial demand for electricity in the United States (US) is price inelastic, with statistically significant (p-values ≤ 0.05) estimates of − 0.029 to − 0.130 for the static own-price elasticity, − 0.021 to − 0.133 for the short-run own-price elasticity, and − 0.043 to − 0.214 for the long-run own-price elasticity. Absent significant price escalation (e.g., 10% per year), the US industrial customer class's price-induced conservation of electricity is likely modest, justifying the continued use of energy efficiency standards and demand side management programs to achieve deep decarbonization.
- Industrial electricity demand
- Panel data analysis
- Price elasticity
- United States