An Empirical Analysis of Electricity Demand in Pakistan

Authors

  • Noel Alter Forman Christian College, a chartered university lahore Pakistan.
  • Shabib Haider Syed Forman Christian College, a chartered university lahore Pakistan.

Abstract

Study utilizes cointegration and vector error correction analysis to determination the long and short run dynamics between electricity demand and its determinants. Study uses time series data for Pakistan from 1970 to 2010. Johansen cointegration test indicate that variables integrate in the long run. Error correction term reflects the convergence of variables towards equilibrium. Electricity acts as a necessity in short run and luxury in long run. Study concludes that effective price and income policies, group pricing policy and peak-load pricing policy should be exercised for electricity demand management.

Keywords: Electricity Intensity; Peak-load Pricing; Derived demand; Pakistan   

JEL Classifications: Q400; Q410

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Author Biography

Noel Alter, Forman Christian College, a chartered university lahore Pakistan.

Economics

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Published

2011-10-28

How to Cite

Alter, N., & Syed, S. H. (2011). An Empirical Analysis of Electricity Demand in Pakistan. International Journal of Energy Economics and Policy, 1(4), 116–139. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/53

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