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An Empirical Analysis of Electricity Demand in Pakistan

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Author Info

  • Noel Alter

    (Department of Economics, Forman Christian College,Lahore, Pakistan)

  • Shabib Haider Syed

    (Department of Economics, Forman Christian College,Lahore, Pakistan)

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    Abstract

    Study utilizes cointegration and vector error correction analysis to determination the long and short run dynamics between electricity demand and its determinants. Study uses time series data for Pakistan from 1970 to 2010. Johansen cointegration test indicate that variables integrate in the long run. Error correction term reflects the convergence of variables towards equilibrium. Electricity acts as a necessity in short run and luxury in long run. Study concludes that effective price and income policies, group pricing policy and peak-load pricing policy should be exercised for electricity demand management.

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    Bibliographic Info

    Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

    Volume (Year): 1 (2011)
    Issue (Month): 4 ()
    Pages: 116-139

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    Handle: RePEc:eco:journ2:2011-04-4

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    Web page: http://www.econjournals.com

    Related research

    Keywords: Electricity Intensity; Peak-load Pricing; Derived demand; Pakistan;

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    Cited by:
    1. Adom, Philip Kofi & Bekoe, William, 2013. "Modelling electricity demand in Ghana revisited: The role of policy regime changes," Energy Policy, Elsevier, vol. 61(C), pages 42-50.
    2. Lin, Boqiang & Zhang, Guoliang, 2013. "Estimates of electricity saving potential in Chinese nonferrous metals industry," Energy Policy, Elsevier, vol. 60(C), pages 558-568.

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