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Residential energy demand: a case study of Kuwait

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  • M. Nagy Eltony
  • Mohammad A. Al‐Awadhi

Abstract

This paper models and estimates energy demand by the household sector using the top‐down or the two‐level approach. The discussion has been developed to include a breakdown of household consumption by fuel type. It also simulates the developed model under three scenarios and presents analyses of the results. The empirical results indicate that short and long run energy consumption and the level of economic activity are interrelated. The model simulation shows that energy consumption varies directly with economic growth. It also illustrates that an increase of 200 per cent in all nominal energy prices will lead to a reduction in household energy demand of 29 per cent by the year 2015. The simulation results clearly demonstrate that the potential for energy conservation exists in Kuwait in the household sector and particularly in the consumption of electricity. Moreover, inter‐fuel substitution will be in favour of electricity when energy prices increase.

Suggested Citation

  • M. Nagy Eltony & Mohammad A. Al‐Awadhi, 2007. "Residential energy demand: a case study of Kuwait," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 31(3), pages 159-168, September.
    • Handle: RePEc:bla:opecrv:v:31:y:2007:i:3:p:159-168
    DOI: 10.1111/j.1468-0076.2007.00181.x
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    Cited by:

    1. Fakhri J. Hasanov & Lester C. Hunt & Ceyhun I. Mikayilov, 2016. "Modeling and Forecasting Electricity Demand in Azerbaijan Using Cointegration Techniques," Energies, MDPI, vol. 9(12), pages 1-31, December.
    2. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    3. Osama Alfalah & Lama Alhumaidan & Deniz Baglan, 2020. "The Demand for Electricity in Kuwait: A Cointegration Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 9-13.
    4. Atalla, Tarek N. & Hunt, Lester C., 2016. "Modelling residential electricity demand in the GCC countries," Energy Economics, Elsevier, vol. 59(C), pages 149-158.

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