Causes of energy shortage in Pakistan: An empirical evidence
We address the causes of electricity shortage in Pakistan by examining data over the period 1971-2010 with time series analysis. The novelty lies in characterizing energy shortage via an index comprising the demands of electricity, gas and oil as well as via the information of public electricity supply. In particular, this index enables a simple empirical approach where energy shortage cannot be directly measured as data. Our main findings are as follows: first, end-consumers adjust their energy demand to the prices only in long run. Second, under-utilization of installed power generation capacity encourages fossil fuel consumption for private electricity. Third, uninterrupted electricity supply could be attained through regulating private electricity generation. Fourth, the relative demand for electricity increases and then decreases with real income in relation to gas and oil. Overall, our investigation implies that price adjustments tactics adopted by the government are not effective policies to deal with power shortage if oriented to short-run impacts. Rather, the government should focus on improving utilization rate of installed power plants and re-channeling the use of oil and gas for public electricity generation. Otherwise, energy shortage shall be worsened with economic growth in Pakistan.
|Date of creation:||Jan 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iuj.ac.jp/research/
More information through EDIRC
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.:
- Arshad Khan, Muhammad & Ahmed, Usman, 2009.
"Energy Demand in Pakistan: A Disaggregate Analysis,"
15056, University Library of Munich, Germany.
- 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.
- Khan, Muhammad Arshad & Ahmed, Usman, 2009. "Energy Demand in Pakistan: A Disaggregate Analysis," MPRA Paper 15369, University Library of Munich, Germany.
- Tishler, Asher, 1993. "Optimal production with uncertain interruptions in the supply of electricity : Estimation of electricity outage costs," European Economic Review, Elsevier, vol. 37(6), pages 1259-1274, August.
- Serra, Pablo & Fierro, Gabriel, 1997.
"Outage costs in Chilean industry,"
Elsevier, vol. 19(4), pages 417-434, October.
- Sanghvi, Arun P., 1982. "Economic costs of electricity supply interruptions : US and foreign experience," Energy Economics, Elsevier, vol. 4(3), pages 180-198, July.
- Zeshan, Muhammad, 2013. "Finding the cointegration and causal linkages between the electricity production and economic growth in Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 344-350.
- de Nooij, Michiel & Lieshout, Rogier & Koopmans, Carl, 2009. "Optimal blackouts: Empirical results on reducing the social cost of electricity outages through efficient regional rationing," Energy Economics, Elsevier, vol. 31(3), pages 342-347, May.
- Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2011.
"The effect of power outages and cheap talk on willingness to pay to reduce outages,"
Elsevier, vol. 33(5), pages 790-798, September.
- Carlsson, Fredrik & Martinsson, Peter & Akay, Alpaslan, 2009. "The Effect of Power Outages and Cheap Talk on Willingness to Pay to Reduce Outages," IZA Discussion Papers 4307, Institute for the Study of Labor (IZA).
- Hasan, Syed Akif & Subhani, Muhammad Imtiaz & Osman, Ms. Amber, 2012. "The energy short fall and its after effects (a case study for Karachi city in context to Karachi electric supply corporation)," MPRA Paper 37663, University Library of Munich, Germany.
- Jamil, Faisal & Ahmad, Eatzaz, 2010. "The relationship between electricity consumption, electricity prices and GDP in Pakistan," Energy Policy, Elsevier, vol. 38(10), pages 6016-6025, October.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Pasha, Hafiz A. & Ghaus, Aisha & Malik, Salman, 1989. "The economic cost of power outages in the industrial sector of Pakistan," Energy Economics, Elsevier, vol. 11(4), pages 301-318, October.
- de Nooij, Michiel & Koopmans, Carl & Bijvoet, Carlijn, 2007. "The value of supply security: The costs of power interruptions: Economic input for damage reduction and investment in networks," Energy Economics, Elsevier, vol. 29(2), pages 277-295, March.
- Steinbuks, J. & Foster, V., 2010. "When do firms generate? Evidence on in-house electricity supply in Africa," Energy Economics, Elsevier, vol. 32(3), pages 505-514, May.
- Carlsson, Fredrik & Martinsson, Peter, 2004.
"Does it Matter When a Power Outage Occurs? - A Choice Experiment Study on the Willingness to Pay to Avoid Power Outages,"
Working Papers in Economics
155, University of Gothenburg, Department of Economics.
- Carlsson, Fredrik & Martinsson, Peter, 2008. "Does it matter when a power outage occurs? -- A choice experiment study on the willingness to pay to avoid power outages," Energy Economics, Elsevier, vol. 30(3), pages 1232-1245, May.
- Rehana Siddiqui, 2004. "Energy and Economic Growth in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(2), pages 175-200.
- Kucukali, Serhat & Baris, Kemal, 2010. "Turkey's short-term gross annual electricity demand forecast by fuzzy logic approach," Energy Policy, Elsevier, vol. 38(5), pages 2438-2445, May.
- Kessides, Ioannis N., 2013. "Chaos in power: Pakistan's electricity crisis," Energy Policy, Elsevier, vol. 55(C), pages 271-285.
- Michael Beenstock & Ephraim Goldin & Yoel Haitovsky, 1997. "The Cost of Power Outages in the Business and Public Sectors in Israel: Revealed Preference vs. Subjective Valuation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 39-61.
- Azam Chaudhry, 2010. "A Panel Data Analysis of Electricity Demand in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 15(Special E), pages 75-106, September.
- Reichl, Johannes & Schmidthaler, Michael & Schneider, Friedrich, 2013. "The value of supply security: The costs of power outages to Austrian households, firms and the public sector," Energy Economics, Elsevier, vol. 36(C), pages 256-261.
- Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
- Beenstock, Michael, 1991. "Generators and the cost of electricity outages," Energy Economics, Elsevier, vol. 13(4), pages 283-289, October.
When requesting a correction, please mention this item's handle: RePEc:iuj:wpaper:ems_2013_01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kazumi Imai, Office of Academic Affairs)
If references are entirely missing, you can add them using this form.