Iimi, Atsushi2014-09-022014-09-022010-01https://hdl.handle.net/10986/19951Recent volatility in international energy prices has revealed South Eastern Europe as one of the most vulnerable regions to such external shocks. Under the current global economic downturn, in addition, the region s energy-intensive industries are faced with the challenge of the weakening demand for their outputs. This paper casts light on the relationship between the price and the demand for energy. Based on firm level data, it is shown that the price elasticity of industrial energy demand is about -0.4 on average. There are a number of data issues to interpret the results correctly. But Albania and Macedonia are systematically found to have a relatively elastic demand for energy on the order of -0.7 to -0.8. In these countries, therefore, price adjustments would be one of the effective policy options to balance demand with supply during the period of energy crisis. In other countries, the demand response would be much weaker; pricing cannot be the only solution. Other policy measures, such as facilitation of firm energy efficiency and improvements in the quality of infrastructure services, may be required.en-USCC BY 3.0 IGOADMINISTERED PRICEADVERSE EFFECTAGGREGATE LEVELAPPROACHAVAILABILITYAVERAGE PRICEBALANCECAPACITY OF ELECTRICITYCEMENTCHEAPER ENERGYCHEMICAL MANUFACTURINGCOMMERCECOMMERCIAL DEMANDCOMMODITY PRICESCOMPETITIVENESSCONDITIONAL DEMANDCONSUMPTION OF ENERGYCOOKINGCOST FUNCTIONSCOST INCREASESCRUDE OILCRUDE OIL PRICEDECLINE IN ENERGY CONSUMPTIONDEMAND CURVEDEMAND DECLINESDEMAND ELASTICITYDEMAND FOR ELECTRICITYDEMAND FOR ENERGYDEMAND FUNCTIONDEVELOPMENT STRATEGYDOMESTIC ENERGYDOMESTIC ENERGY SUPPLYDOMESTIC MARKETECONOMETRICSECONOMIC COMPETITIVENESSECONOMIC EFFICIENCYECONOMIC STRUCTUREECONOMIC STRUCTURESECONOMIC THEORYECONOMIES OF SCALEEFFICIENCY IMPROVEMENTELASTICITY OF SUBSTITUTIONELECTRICAL TRANSFORMERSELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY GENERATIONELECTRICITY GENERATION CAPACITYELECTRICITY PRICEELECTRICITY PRICESELECTRICITY PRODUCTIONELECTRICITY SECTORELECTRICITY SUPPLYELECTRICITY TARIFFELECTRICITY TARIFFSEMPLOYMENTEND USERSEND-USEEND-USERSENERGY ALTERNATIVESENERGY BALANCEENERGY CONSUMERSENERGY CONSUMPTIONENERGY COSTSENERGY CRISISENERGY DEMANDENERGY DEMAND ELASTICITIESENERGY EFFICIENCYENERGY EXPENDITUREENERGY INPUTENERGY INTENSIVEENERGY MARKETENERGY MARKETSENERGY POLICIESENERGY POLICYENERGY PRICEENERGY PRICESENERGY SECURITYENERGY SOURCEENERGY SOURCESENERGY SUPPLYENERGY USEENERGY USERSENERGY-EFFICIENT DEVICESEXCESS SUPPLYEXPENDITURESEXPORTSFACTOR DEMANDFACTOR PRICEFACTOR PRICESFUELFUEL CONSUMPTIONFUEL PRICEFUELSGDPGENERATIONGENERATION CAPACITYHIGH ENERGY INTENSITYHIGH ENERGY PRICESHOT WATERHYDROPOWERHYDROPOWER GENERATIONIMPROVING ENERGY EFFICIENCYINCOMEINDUSTRIAL ELECTRICITY PRICEINDUSTRIAL ENERGY CONSUMPTIONINEFFICIENCYINPUT PRICESINTERNATIONAL NATURAL GASMAJOR ENERGY SOURCEMARKET CONDITIONMARKET PRICESMARKET REFORMSMARKET STRUCTURENATURAL GASOIL CRISISPOTENTIAL DEMANDPOWERPOWER CONSUMPTIONPOWER PLANTSPOWER SECTORPOWER STATIONSPOWER SYSTEMPRICE ADJUSTMENTPRICE ADJUSTMENTSPRICE CHANGEPRICE CHANGESPRICE DISCRIMINATIONPRICE ELASTICITIESPRICE ELASTICITYPRICE ELASTICITY OF DEMANDPRICE ELASTICITY OF ENERGY DEMANDPRICE INCREASESPRICE LEVELPRICE OF ELECTRICITYPRICE POLICYPRICES OF COALPRICING POLICYPRIMARY ENERGYPRIMARY ENERGY SUPPLYPRODUCT QUALITYPRODUCTION COSTSPRODUCTION LEVELSPUBLIC UTILITIESRESIDENTIAL CONSUMERSRESIDENTIAL CUSTOMERSRESIDENTIAL DEMANDRESIDENTIAL ELECTRICITYRESIDENTIAL ENERGYRESIDENTIAL ENERGY DEMANDRETAILRETAIL PRICESSCALE EFFECTSECURITY OF ENERGY SUPPLYSPOT PRICESUBSTITUTIONSUBSTITUTION EFFECTSUPPLY COSTSUPPLY CURVETELECOMMUNICATIONSTOTAL COSTSTOTAL SALESTRANSITION ECONOMIESTRANSMISSION CAPACITYTRANSMISSION LOSSESUTILITIESVERTICAL LINEVOLATILITYVOLTAGEWAGES10.1596/1813-9450-5167