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An Empirical Analysis of Electricity Demand in Pakistan

Author

Listed:
  • Noel Alter

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

  • Shabib Haider Syed

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

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.

Suggested Citation

  • Noel Alter & Shabib Haider Syed, 2011. "An Empirical Analysis of Electricity Demand in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 1(4), pages 116-139.
    • Handle: RePEc:eco:journ2:2011-04-4
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Electricity Intensity; Peak-load Pricing; Derived demand; Pakistan;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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