Seminar

The Power of Substitution: Short-Run Electricity Demand Flexibility

Katinka Holtsmark (University of Oslo)

  • Date9 November 2026
  • Time 11h00 - 12h15
  • Room Auditorium 4

Résumé

We estimate short-run electricity demand responses to price changes for Norwegian households from 2023 to 2025, using continental solar and wind forecasts, and hydrological inflow to instrument supply-driven price variation. The presence of several instruments for the price changes allows us to explicitly test the margins at which substitution happens. Households’ electricity substitution is real but coarse: households mostly choose between day and night consumption with a price elasticity of 0.073. Substitution across hours within these blocks, or across days, is more limited.

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