Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2018.1457967
Revisiting income and price elasticities of electricity demand in Pakistan
Hanan Ishaque
; Department of Economics, Alpen Adria University, Klagenfurt, Austria
Sažetak
In view of a more than decade-long power crisis in Pakistan, several
studies have estimated income and price elasticities of electricity
demand. These estimates are based on electricity consumption
data that do not reflect actual demand due to an electricity supply
shortfall of up to 6000 megawatts (MW). Moreover, previous
studies accounted for power consumption data of only one of the
two electric power companies, Pakistan Electric Power Company
(P.E.P.C.O.), ignoring the other company K-Electric, with a share of
over 15% in country’s electricity consumption. This study attempts
to revisit electricity demand elasticities in Pakistan at the aggregate
and sectoral level by including both P.E.P.C.O. and K-Electric and
adjusting the consumption series for load shedding to reflect actual
electricity demand. By employing an Autoregressive Distributive
Lag model, the study finds electricity demand to be income elastic
at aggregate level and in the agriculture sector in the long run, and
relatively inelastic in the industrial sector. However, unlike previous
studies, the electricity demand is price inelastic at all levels, which is
an expected outcome in an economy facing electricity shortages. The
coefficients of short-run income and price elasticities are smaller than
their long-run counterparts. No evidence of cointegration is found for
the commercial sector
Ključne riječi
Electricity demand; economic growth; income elasticity; price elasticity; Pakistan
Hrčak ID:
206096
URI
Datum izdavanja:
3.12.2018.
Posjeta: 973 *