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Determinants of Gas Energy Consumption in Pakistan: An Econometric Analysis (1971-2006)

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  • Khattak, Naeem Ur Rehman Khattak
  • Hussain, Anwar Hussain

Abstract

The paper evaluates the determinants of gas energy consumption in Pakistan during 1971-2006 using econometric techniques. Time series data ranging from 1971 to 2006 has been taken from Economic Survey of Pakistan (Statistical Supplement, 2006-07). For the analysis of the data, Augmented Dickey Fuller (ADF) test, Jhonson Co-integration test (likelihood ratio statistic) and the method of ordinary least square have been used. The results indicate that 1% each increase in the gas energy consumption in the household, cement, fertilizer, power and industry sector brings 1.04%, 1.03%, 0.95%, 0.97% and 1.37% change in the total energy consumption respectively. The coefficients of all the explanatory variables are statistically significant at both 5% and 1% level of significance. It is recommended to increase the gas energy supply to meet the requirement in the household and industry sector.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41993.

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Date of creation: 2009
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Handle: RePEc:pra:mprapa:41993

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Keywords: Determinants; gas; energy; consumption; econometric; analysis;

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  1. Evrendilek, F & Ertekin, C, 2003. "Assessing the potential of renewable energy sources in Turkey," Renewable Energy, Elsevier, Elsevier, vol. 28(15), pages 2303-2315.
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