Niroo Research Institute Journal of Energy and Economic Development 2821-2061 1 3 2022 12 01 Evaluation of Increasing-Block Pricing for Residential Electricity: A Case Study of Iran 90 100 203072 10.30503/jeedev.2024.441786.1034 EN Pouyan Kiani Assistant Professor, Department of energy economics, Niroo Research Institute (NRI), Tehran, Iran 0000-0003-4475-2928 Maryam Nafisi Moghadam Expert of Investment and Financial Affairs, Renewable Energy and Energy Efficiency Organization of Iran (SATBA), Tehran, Iran. 0000-0002-7328-808X Shahabodin Fuladi Moghadam MA in Economics, Allameh Tabataba’i University, Tehran, Iran. Journal Article 2024 02 05 In Iran, residential electricity prices are determined by the Increasing Block Pricing (IBP). In this approach, electricity prices increase with consumption as it moves from one block to a higher block. To assess the effectiveness of this policy and analyse the price elasticity of residential electricity demand in Iran, this study utilises data from the 31 provinces of Iran to estimate two models of electricity demand based on average price and marginal price from 2015:3 to 2020:2. For this purpose, this study uses the Dynamic Common Correlated Effects (DCCE) approach. The results show that electricity is inelastic. Moreover, the comparison of coefficients of average price and marginal price shows that the consumer's response to changes in the average price is greater than the marginal price. Therefore, the IBP policy has not performed well regarding electricity demand management. https://jeedev.nri.ac.ir/article_203072_a83a3c09fc0f6fcf8adb062aae198825.pdf