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Energy Demand in Pakistan: A Disaggregate Analysis

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  • Khan, Muhammad Arshad
  • Ahmed, Usman

Abstract

This study examines the demand for energy at disaggregate level (gas, electricity and coal) for Pakistan over the period 1972-2007. Over main results suggest that electricity and coal consumption responds positively to changes in real income per capita and negatively to changes in domestic price level. The gas consumption responds negatively to real income and price changes in the shortrun, however, in the long-run real income exerts positive effect on gas consumption, while domestic price remains insignificant. Furthermore, in the short-run the average elasticities of price and real income for gas consumption (in absolute terms) are greater than that of electricity and coal consumption. The differences in elasticities of each component of energy have significant policy implications for income and revenue generation.

Suggested Citation

  • Khan, Muhammad Arshad & Ahmed, Usman, 2009. "Energy Demand in Pakistan: A Disaggregate Analysis," MPRA Paper 15369, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:15369
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    More about this item

    Keywords

    Energy Demand; Cointegration; Pakistan;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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