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price-elasticity
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Estimating Demand Function for Antihypertensives in Iran
, M.Sc. Thesis Sharif University of Technology ; Fatemi Ardestati, Farshad (Supervisor)
Abstract
The essential need for allocation of appropriate resources to the wellbeing and medication plans in a society can be understood from the fundamental impact of health on the performance of the labor force of the society, which can lead to significant increase in the economic growth rate. The high costs associated with research and development make pharmaceutical industry owners to be very vigilant about their investment on new drugs and expected sales. The purpose of this study is to evaluate current Iranian market for a part of Antihypertensive drugs and to estimate the demand for this group of drugs. The method used to obtain the estimation involved multi-stage budgeting, which benefits...
Estimating Price Elasticity of Gasoline Demand Using Transaction-Level Data
, M.Sc. Thesis Sharif University of Technology ; Vesal, Mohammad (Supervisor) ; Rahmati, Mohammad Hossein (Supervisor)
Abstract
One of the most widely discussed parameters in energy economics is the price elasticity of gasoline demand due to its substantial implications for taxation, energy efficiency, and environmental policies. This paper aims to estimate the price elasticity of gasoline demand using a novel source of data. The data is from Iran, in the early months of 2014. Vehicles get a quota of 60 liters per month as subsidized gasoline at a lower price. The quota is transferable to the next months if it has not been consumed. All of the information about each pumping transaction is gathered in a centralized database, assigning a unique fuel card to each vehicle. Consequently, the structure of the market provides...
Estimating The Demand of Freeways in Iran, Using Discreet Choice Model
, M.Sc. Thesis Sharif University of Technology ; Rahmati, Mohammad Hossein (Supervisor) ; Vesal, Mohammad (Supervisor)
Abstract
According to the principle No. 44 of the Constitution of the Islamic Republic of Iran, Roads are in the public domain and are at the discretion of the Government. The result of this rule is that there is always a free route on the side of the freeway and motorists have the right to choose between a freeway and its successor road. This is a perfect laboratory condition which gives the opportunity that can be used with discrete choice models to estimate the demand of freeway versus its successor. In this paper we estimate the determinant parameters of the freeway demand versus the successor road and price elasticity of demand that can be calculated separately for each path. The results show...
Estimation of Gasoline Demand Elasticity in Iran
, M.Sc. Thesis Sharif University of Technology ; Rahmati, Mohammad Hossein (Supervisor) ; Vesal, Mohammad ($item.subfieldsMap.e)
Abstract
The price elasticity of gasoline demand is a key parameter in evaluation of various policy options. However, most of the literature uses aggregate data to identify this elasticity. Temporal and spatial aggregation make elasticity estimates unreliable. We employ a unique dataset of all gasoline transactions in Iran during a four-month period around an unexpected exogenous price change to identify price elasticity. After controlling for date and individual fixed effects we estimate a robust significant price elasticity of -0.127. Aggregation of the same data by week, month, and city yields an estimate of -0.3 indicating a significant bias in earlier studies. We also identify a significant...
Price elasticity of gasoline smuggling: a semi-structural estimation approach
, Article Energy Economics ; Volume 71 , 2018 , Pages 171-185 ; 01409883 (ISSN) ; Rafizadeh, N ; Rahmati, M. H ; Sharif University of Technology
Elsevier B.V
2018
Abstract
We estimate the price elasticity of the demand for gasoline smuggling in Iran. For this purpose, we employ a detailed panel of monthly gasoline consumption data from 160 distribution hubs during the period 2005–2014. We apply two different approaches which are diff-in-diff and panel data estimations. The results suggest that the foreign-to-home gasoline price ratios have a significant impact on the time-varying elasticity of demand. This finding supports the hypothesis that an increase in domestic gasoline prices will significantly reduce the demand for smuggling. In addition, as the distance of a region from its closest higher-price neighboring country diminishes, the price elasticity of...
Estimating Air Travel Demand in Iran’s Domestic Routes
, M.Sc. Thesis Sharif University of Technology ; Fatemi Ardestati, Farshad (Supervisor) ; DadPay, Ali (Co-Advisor)Impact of Inflation on Household’s Saving within the Framework of Expenditure System
, M.Sc. Thesis Sharif University of Technology ; Nili, Masoud (Supervisor)
Abstract
In this thesis the impact of inflation on urban household saving is investigated. For calculating sensitivity of saving respect to price changing of different groups of commodities, firstly we divided household cost to two separated groups of durable and nondurable and then by defining total income as summation of monetary and nonmonetary income of households, We consider saving as total income minuses nondurable consumption. Finally we estimated the “Extended Linear Expenditure System” model base on the prepared data. Since inflation is result of unequal changes in prices of goods and services, the approach of expenditure system allows us to assess unequal changes in prices for eight...
Estimation of the Price Elasticity of Gasoline Smuggling Demand in Iran
, M.Sc. Thesis Sharif University of Technology ; Rahmati, Mohammad Hossein (Supervisor)
Abstract
This study investigates the price elasticity of gasoline smuggling demand in Iran. For this purpose, a panel data of monthly gasoline consumption has been used that contains data for 160 regions of distribution for Iran's Oil Production Company between 2005 and 2014. The results of estimating the monthly elasticity of gasoline smuggling demand in each region show a significant impact of the gasoline price differential between Iran and its neighboring countries, as well as the distance of each region with the neighboring countries on the demand. The results of this study show that whenever gasoline prices increase inside the country, the inclination to smuggling has been decreased due to a...
Household Electricity Demand Estimation: A Regression Discontinuity Design Approach
, M.Sc. Thesis Sharif University of Technology ; Vesal, Mohammad (Supervisor) ; Rahmati, Mohammad Hossein (Supervisor)
Abstract
Estimating electricity demand elasticity in different sectors has been an essential research topic. Considering the fact that pricing electricity in various countries does not follow the same rules, many econometrics methods have been developed to estimate this crucial parameter. Electricity demand elasticity is defined as the percent change in electricity consumption in response to one percentage change in electricity price. Having a correct estimate of this parameter would help policymakers to price electricity properly in order to reach desirable goals in electricity consumption optimization and many other aspects of electricity consumption. In Iran, Tavanir Co. which is a subsidiary of...
Incorporating two-part real-time pricing scheme into distribution system operation
, Article Proceedings - 2014 Electrical Power and Energy Conference, EPEC 2014 ; 2014 , p. 178-183 ; Fotuhi-Firuzabad, M ; Parvania, M ; Abbaspour, A ; Sharif University of Technology
Abstract
Existing real-time pricing (RTP) schemes charge the whole customer's consumption at one highly volatile time varying price, which, in turn, imposes financial risk to participating customers. This paper presents a two-part RTP scheme aiming at efficient distribution system operation while mitigating customers' risk level imposed by volatile RTP prices. Our proposed RTP scheme offers two different RTP price signals. The first RTP price signal is used to charge customer's consumption up to its customer baseline load (CBL) which presents customer's consumption in the absence of RTP signals. The second RTP price signal is announced a day ahead of the actual operation, and can be updated in real...
Impacts of time-varying electricity rates on forward contract scheduling of DisCos
, Article IEEE Transactions on Power Delivery ; Vol. 29, issue. 2 , 2014 , p. 733-741 ; ISSN: 8858977 ; Fotuhi-Firuzabad, M ; Lehtonen, M ; Sharif University of Technology
Abstract
Time-varying electricity rates enable demand-side potentials, which provide an opportunity for distribution companies (DisCos) to hedge against the financial risk imposed by volatile spot market prices and uncertain customers' load. In particular, time-varying rates can be effective alternatives for at least a portion of costly forward contracts. This paper establishes a stochastic framework to determine optimal forward market purchases under time-varying rates. Various electricity rating strategies with different time intervals covering flat, time-of-use, and real-time pricing schemes are considered. The objective of the framework is to maximize DisCo's expected profit while the exposure...
Fuel consumption information: An alternative for congestion pricing?
, Article Road and Transport Research ; Vol. 23, issue. 3 , Sep , 2014 , p. 52-64 ; 10375783 ; Zarei, H ; Sharif University of Technology
Abstract
People's poor perception of the amount they spend on fuel is considered to be an important reason for the low price elasticity of gasoline demand. Users' travel demand can be changed by making them more aware of the fuel costs of different routes. As a result of becoming informed about their petrol consumption cost prior to entering traffic congestion, users may take an alternative route, change their travel schedule, or decide not to travel at all. Without considering the change in the price elasticity of gasoline demand, this study estimates the effects of providing gasoline consumption information (GCI) on people's route choice behaviour, the influence of fuel price on the effectiveness...
A medium-term decision model for disCos: Forward contracting and TOU pricing
, Article IEEE Transactions on Power Systems ; Volume 30, Issue 3 , 2015 , Pages 1143-1154 ; 08858950 (ISSN) ; Fotuhi Firuzabad, M ; Lehtonen, M ; Sharif University of Technology
Institute of Electrical and Electronics Engineers Inc
2015
Abstract
Time varying prices by motivating customers to reduce their consumption in peak periods propel the electricity industry towards a higher efficiency compared to that of common flat prices. Focusing on time-of-use (TOU) sale prices, this paper establishes a stochastic model for the medium-term decision making problem faced by a distribution company (DisCo). The developed model deals with the DisCo's decisions on the level of involvement in forward contracts and in the pool as well as the sale prices offered to customers. The demand response to TOU prices is captured using a price elasticity matrix (PEM). The objective is to maximize the DisCo's profit while the exposure risk imposed by...
Prioritizing the effectiveness of a comprehensive set of demand response programs on wind power integration
, Article International Journal of Electrical Power and Energy Systems ; Volume 107 , 2019 , Pages 149-158 ; 01420615 (ISSN) ; Ehsan, M ; Soleymani, S ; Shafie khah, M ; Catalão, J. P. S ; Sharif University of Technology
Elsevier Ltd
2019
Abstract
The environmental targets set by power sectors throughout the world are the main drivers toward increasing the share of variable renewable energy sources (VRESs). Growth of VRESs will lead to a higher demand for operational flexibility due to their stochastic nature. Traditionally, conventional generation units provide the major share of additional required flexibility that may result in a higher depreciation. Motivated by this challenge, this paper investigates the potential of Demand Response (DR) as an emerging alternative in systems with significant amounts of wind power. To this end, a comprehensive set of DR programs including tariff-based, incentive-based and combinational DR programs...