EST？MAT？ON OF PR？CE ELAST？C？TY OF INDUSTR？AL AND RES？DENT？AL ELECTR？C？TY DEMAND ？N EUROPEAN UN？ON COUNTR？ES

This study aims to estimate long and short term price elasticities of demand for electrical energy in industrial and residential sectors by using 2005 - 2015 annual data for 28 Europan Union (EU) countries with panel data analysis. The existence of long-run relationship between variables is investigated by Pedroni and Kao panel cointegration tests and long and short run coefficients are obtained by using the Pooled Mean Group Estimator (PMGE). As a result of the econometric analysis, it is found that there is long term relationship between electricity consumption and electricity price for industrial and residential sector and short term coefficients for both sectors are not statistically significant, however long term price elasticity coefficients are statistically significant