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The Impact of Electricity Crisis and Prices on the Consumption Behavior of Small and Medium Enterprises (SMES)

Author

Listed:
  • Basharat Ali

    (COL MBA Student, Allama Iqbal Open University, Islamabad, Pakistan)

  • Muhammad Ali Murtaza Alvi

    (Research Foundation for Humanity (RFH), Pakistan)

  • Ahmed Imran Hunjra

    (UIMS-PMAS-University of Arid Agriculture Rawalpindi, and PhD Scholar Iqra University Islamabad, Pakistan)

Abstract

The major objectives of this study are to divert the government attention to the burning issues of the country regarding increasing electricity crises and prices and their ultimate effect on SMEs. This study analyses the responses from 200 employees selected randomly from different SMEs of Pakistan. Correlation and regression analysis are used in this research. Increasing Electricity prices & crises put negative impact on the consumption behavior of SMEs. Crises enormously affected the consumption behavior of SMEs instead of electricity prices. These crises put direct negative impact on the operation of SMEs and reduce their production, sale revenues and employment. SMEs sector should be granted legal permission produce their own electricity to overcome the shortfall in order to avoid its adverse effects on production and employment.

Suggested Citation

  • Basharat Ali & Muhammad Ali Murtaza Alvi & Ahmed Imran Hunjra, 2015. "The Impact of Electricity Crisis and Prices on the Consumption Behavior of Small and Medium Enterprises (SMES)," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(1), pages 25-40, March.
    • Handle: RePEc:ijr:beejor:v:3:y:2015:i:1:p:25-40
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    More about this item

    Keywords

    Electricity Prices; Electricity Crisis; SMEs; Consumption; Shortfall;
    All these keywords.

    JEL classification:

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

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