Demand for Energy and the Revenue Impact of Changes in Energy Prices
AbstractEnergy sector is considered an important source of revenue generation for the government. However, given the price elastic energy demand structure, the revenue generating potential of this sector may be limited. This study examines this issue by analyzing the demand for different sources of energy for domestic, commercial, industrial and other users. The results show that energy demand is, in general, price elastic. Similarly, the changes in income also affect energy demand significantly. This responsiveness of the energy demand to changes in prices (own and others) and to economic conditions in the country can affect the revenue generation from this sector. In Pakistan, given the existing economic conditions and the energy price structure, the actual revenue generation may be significantly lower then expected revenue. Furthermore, the rise in energy price may not be desirable due to its impact on inflation, income distribution, economic competitiveness, environment, and on other social conditions unless it leads to energy conservation in the country.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Pakistan Institute of Development Economics in its series PIDE-Working Papers with number 1999:174.
Length: 34 pages
Date of creation: 1999
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Helliwell, John F. & Cox, Alan J., 1979. "Electricity pricing and electricity supply : The influence of utility pricing on electricity production by pulp and paper mills," Resources and Energy, Elsevier, vol. 2(1), pages 51-74, September.
- 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.
- Arshad Khan, Muhammad & Ahmed, Usman, 2009. "Energy Demand in Pakistan: A Disaggregate Analysis," MPRA Paper 15056, University Library of Munich, Germany.
- Khan, Muhammad Arshad & Ahmed, Usman, 2009. "Energy Demand in Pakistan: A Disaggregate Analysis," MPRA Paper 15369, University Library of Munich, Germany.
- Theresa Chaudhry, 2010. "Estimating Residential Electricity Demand Responses in Pakistan’s Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 107-138, September.
- Rehana Siddiqui, 2004. "Energy and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(2), pages 175-200.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.