Abstract
This study examines price elasticity and electricity demand in Japanese regions. It measures the price elasticity of residential, industrial and commercial power demand within nine power company areas. Electricity demand is generally considered extremely inelastic. The price elasticity of electric power demand is assumed to be as low as zero or -0.1. The results from this empirical analysis reveal price elasticity values for residential demand, in each region, are distributed between -0.17 and -0.66; therefore, in all regions, price elasticity varies significantly from zero. Furthermore, as price elasticity values for industrial and commercial power demand are between -0.16 and -0.55, these values also vary significantly from zero in all regions.
