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Residential Demand for Electricity and Natural Gas in Pakistan

Author

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  • MAHMOOD IQBAL

    (Economics at Simon Fraser University, Canada.)

Abstract

A model for residential demand for fuel in Pakistan was developed on the basis of stock of fuel-consuming appliances and their rate of utili~ation. Income and price elasticities of natural gas and electricity are estimated by the OLS and GLS methods. The income elasticity of natural gas and electricity and price elasticity of natural gas are found statistically significant and consistent with a priori knowledge of economic theory. Several policy implications are pointed out and suggestions are made for improvement in future estimations.

Suggested Citation

  • Mahmood Iqbal, 1983. "Residential Demand for Electricity and Natural Gas in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 22(1), pages 23-36.
    • Handle: RePEc:pid:journl:v:22:y:1983:i:1:p:23-36
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    File URL: http://www.pide.org.pk/pdf/PDR/1983/Volume1/23-36.pdf
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    References listed on IDEAS

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    1. Ernst R. Berndt & G. Campbell Watkins, 1977. "Demand for Natural Gas: Residential and Commercial Markets in Ontario and British Columbia," Canadian Journal of Economics, Canadian Economics Association, vol. 10(1), pages 97-111, February.
    2. Anees Javed, 1978. "Household Demand for Natural Gas in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 17(4), pages 468-478.
    3. Lester D. Taylor, 1975. "The Demand for Electricity: A Survey," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 74-110, Spring.
    4. Murray, Michael P, et al, 1978. "The Demand for Electricity in Virginia," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 585-600, November.
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    Cited by:

    1. Muhammad Arshad Khan & Usman Ahmad, 2008. "Energy Demand in Pakistan: A Disaggregate Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 437-455.
    2. Rehana Siddiqui, 1999. "Demand for Energy and the Revenue Impact of Changes in Energy Prices," PIDE-Working Papers 1999:174, Pakistan Institute of Development Economics.
    3. Jamil, Faisal & Ahmad, Eatzaz, 2011. "Income and price elasticities of electricity demand: Aggregate and sector-wise analyses," Energy Policy, Elsevier, vol. 39(9), pages 5519-5527, September.
    4. Ghulam Yahya Khan & Syeda Nazish Rashid & Salik Mehboob, 2018. "Empirical Analysis of Household Energy Demand Using Almost Ideal Demand System: A Case Study of District Muzaffarabad, Azad Kashmir, Pakistan," Energy Economics Letters, Asian Economic and Social Society, vol. 5(1), pages 12-22, March.
    5. Irfan, Muhammad & Cameron, Michael P. & Hassan, Gazi, 2018. "Household energy elasticities and policy implications for Pakistan," Energy Policy, Elsevier, vol. 113(C), pages 633-642.
    6. Yumin Li & Yan Jiang & Shiyuan Li, 2022. "Price and income elasticities of electricity in China: Estimation and policy implications," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 76-90, November.
    7. Lim, Kyoung-Min & Lim, Seul-Ye & Yoo, Seung-Hoon, 2014. "Short- and long-run elasticities of electricity demand in the Korean service sector," Energy Policy, Elsevier, vol. 67(C), pages 517-521.
    8. Copiello, Sergio & Grillenzoni, Carlo, 2017. "Is the cold the only reason why we heat our homes? Empirical evidence from spatial series data," Applied Energy, Elsevier, vol. 193(C), pages 491-506.
    9. Rehana Siddiqui & Rashida Haq, 1999. "Demand for Energy and the Revenue Impact of Changes in Energy Prices," PIDE Research Report 1999:2, Pakistan Institute of Development Economics.
    10. Khan, Muhammad Arshad & Abbas, Faisal, 2016. "The dynamics of electricity demand in Pakistan: A panel cointegration analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 1159-1178.
    11. Shamaila Aziz & Muhammad Rizwan Yaseen & Sofia Anwar, 2016. "Impact of Rising Energy Prices on Consumer’s Welfare: A Case Study of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 605-618.
    12. Muhammad Saad Moeen & Muhammad Asjad Tariq & Saqib Shahzad & Shehryar Rashid, 2016. "Factors Influencing Choice of Energy Sources in Rural Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 905-920.
    13. Muhammad Irfan & Michael P. Cameron & Gazi Hassan, 2017. "Household Energy Elasticities in Pakistan: An Application of the LA-AIDS Model on Pooled Household Data," Working Papers in Economics 17/11, University of Waikato.
    14. Aslam, Misbah & Ahmad, Eatzaz, 2023. "Untangling electricity demand elasticities: Insights from heterogeneous household groups in Pakistan," Energy, Elsevier, vol. 282(C).
    15. Muhammad Arshad Khan & Abdul Qayyum, 2009. "The demand for electricity in Pakistan," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 33(1), pages 70-96, March.

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