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How Can We Assess the Relation Between Equipment, Price and Electricity Demand in Tunisia?

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  • Imen Gam

    (Sousse University, Faculty of Law, Economics and Politics of Sousse, Tunisia)

  • Jaleleddine Ben Rejeb

    (Higher Institute of Management of Sousse, University of Sousse, Tunisia)

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    Abstract

    Economists and analysts of electricity demand sector believed for a long time that equipment is a key factor. They try to determine the performance of Equipment policy instrument on energy demand. For lack of reliable data, they use in most cases the variable “urbanization rate” as proxy to the variable “equipment”. To assess the effectiveness of this policy as a tool to decrease electricity demand in Tunisia, we estimate a Translog production function “KLEM” using annual data spanning the period 1990-2007. The results suggest that an Equipment policy like a price policy play a crucial role in reducing electricity demand. Furthermore, those results highlight the complementary relation between electricity and equipment in the economic sense.

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    Bibliographic Info

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

    Volume (Year): 2 (2012)
    Issue (Month): 3 ()
    Pages: 159-166

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    Handle: RePEc:eco:journ2:2012-03-8

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

    Related research

    Keywords: Electricity demand; Equipment policy instrument; Price policy; KLEM model; Complementary;

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    1. Halicioglu, Ferda, 2007. "Residential electricity demand dynamics in Turkey," Energy Economics, Elsevier, vol. 29(2), pages 199-210, March.
    2. Kraft, John & Kraft, Arthur, 1980. "Interfuel substitution and energy consumption in the industrial sector," Applied Energy, Elsevier, vol. 6(4), pages 275-288, July.
    3. J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
    4. Hondroyiannis, George, 2004. "Estimating residential demand for electricity in Greece," Energy Economics, Elsevier, vol. 26(3), pages 319-334, May.
    5. Amusa, Hammed & Amusa, Kafayat & Mabugu, Ramos, 2009. "Aggregate demand for electricity in South Africa: An analysis using the bounds testing approach to cointegration," Energy Policy, Elsevier, vol. 37(10), pages 4167-4175, October.
    6. Griffin, James M & Gregory, Paul R, 1976. "An Intercountry Translog Model of Energy Substitution Responses," American Economic Review, American Economic Association, vol. 66(5), pages 845-57, December.
    7. Silk, Julian I. & Joutz, Frederick L., 1997. "Short and long-run elasticities in US residential electricity demand: a co-integration approach," Energy Economics, Elsevier, vol. 19(4), pages 493-513, October.
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