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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.

Suggested Citation

  • Khattak, Naeem Ur Rehman Khattak & Hussain, Anwar Hussain, 2009. "Determinants of Gas Energy Consumption in Pakistan: An Econometric Analysis (1971-2006)," MPRA Paper 41993, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:41993
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    File URL: https://mpra.ub.uni-muenchen.de/41993/1/MPRA_paper_41993.pdf
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    References listed on IDEAS

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

    Determinants; gas; energy; consumption; econometric; analysis;

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services

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