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


  • 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)


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.

Suggested Citation

  • Imen Gam & Jaleleddine Ben Rejeb, 2012. "How Can We Assess the Relation Between Equipment, Price and Electricity Demand in Tunisia?," International Journal of Energy Economics and Policy, Econjournals, vol. 2(3), pages 159-166.
  • Handle: RePEc:eco:journ2:2012-03-8

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    References listed on IDEAS

    1. 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 845-857, December.
    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. Halicioglu, Ferda, 2007. "Residential electricity demand dynamics in Turkey," Energy Economics, Elsevier, vol. 29(2), pages 199-210, March.
    4. 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.
    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. 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.
    7. Hondroyiannis, George, 2004. "Estimating residential demand for electricity in Greece," Energy Economics, Elsevier, vol. 26(3), pages 319-334, May.
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    Cited by:

    1. Lee Lian Ivy-Yap & Hussain Ali Bekhet, 2015. "Examining the Feedback Response of Residential Electricity Consumption towards Changes in its Determinants: Evidence from Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 772-781.

    More about this item


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

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • F1 - International Economics - - Trade
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy


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