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What Inspires Electricity Crises at the Micro Level: Empirical Evidence from Electricity Consumption Pattern of Households from Karachi

Author

Listed:
  • Lubna Naz

    (Pakistan Institute of Development Economics, Islamabad)

  • Munir Ahmad

    (Pakistan Institute of Development Economics, Islamabad)

Abstract

The present study uses the conditional demand model to analyse end use electricity demand. It also uses Binary logistic model to find out likelihood of households being affected from electricity crises. The model also uses household’s characteristics and ownership of modern appliances as determinants of electricity crises. The study employs cross-sectional data collected from Karachi, Pakistan, in 2013. The results from two-sample t-test show that a gender-specific difference exists in the holding of air-conditioners, dryers and washing machines. The estimates of the conditional demand model infer that electricity demand depends on end use of electricity in Karachi, and dwelling type, household size and income interact with end use electricity consumption. The estimates of logistic model imply that male-headed and households who protest in the streets have lower probability of getting affected from electricity breakdown than female-headed and passive households. In addition, household with limited or no alternate provisions during electricity load shedding is more vulnerable to electricity breakdown. The study suggests to focus on the role of demand-side management by motivating electricity conservation at the household level and legislation against power theft to redress problems caused by electricity breakdown

Suggested Citation

  • Lubna Naz & Munir Ahmad, 2013. "What Inspires Electricity Crises at the Micro Level: Empirical Evidence from Electricity Consumption Pattern of Households from Karachi," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(4), pages 375-403.
  • Handle: RePEc:pid:journl:v:52:y:2013:i:4:p:375-403
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    Cited by:

    1. Shahbaz, Muhammad, 2015. "Measuring Economic Cost of Electricity Shortage: Current Challenges and Future Prospects in Pakistan," MPRA Paper 67164, University Library of Munich, Germany, revised 12 Oct 2015.

    More about this item

    Keywords

    Conditional Demand Model; End-Use Electricity Consumption; Binary Logistic Model;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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