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A Panel Data Analysis of the Demand for Electricity in Canada

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  • Ehsan Latif

Abstract

type="main" xml:id="ecpa12103-abs-0001"> The article uses panel data from the Statistics Canada (1983–2010) to examine the determinants of electricity consumption in Canada. The estimations from the Fully Modified Ordinary Least square (OLS) and Dynamic OLS models suggest that per capita real Gross Domestic Production (GDP) has a significant positive while electricity price has a negative, but insignificant impact on per capita electricity consumption. The study uses Panel Vector Error Correction Model (VECM) to examine long and short run causality among the variables. The Panel VECM results suggest that there is a long run causal relationship among electricity consumption, real GDP and electricity price. The Panel VECM results further suggest that unidirectional short run causality runs from per capita real GDP to per capita electricity consumption.

Suggested Citation

  • Ehsan Latif, 2015. "A Panel Data Analysis of the Demand for Electricity in Canada," Economic Papers, The Economic Society of Australia, vol. 34(3), pages 192-205, September.
    • Handle: RePEc:bla:econpa:v:34:y:2015:i:3:p:192-205
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    File URL: http://hdl.handle.net/10.1111/ecpa.2015.34.issue-3
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    Cited by:

    1. Adam, Antonis, 2020. "Under economic adjustment programs, do private sector wages respond to changes in public wages and employment?," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1334-1351.
    2. Al-Bajjali, Saif Kayed & Shamayleh, Adel Yacoub, 2018. "Estimating the determinants of electricity consumption in Jordan," Energy, Elsevier, vol. 147(C), pages 1311-1320.
    3. Asuamah Yeboah, Samuel, 2018. "Do government activities determine electricity consumption in Ghana? An empirical investigation," MPRA Paper 89408, University Library of Munich, Germany.

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