Original scientific paper
https://doi.org/10.1080/1331677X.2023.2186910
A cross-sectoral analysis of energy shortages in Pakistan: based on supply-driven input-output model
Tayyaba Rani
Feng Wang
Atif Awad
Jingfei Zhao
Abstract
The impacts of energy shortages characterized by regular blackouts,
natural gas, and electricity load shedding in Pakistan affected
each economic sector, causing an energy-induced crisis and ecological
sustainability issues. This study was conducted to reveal the
benefits of renewable energy and describe the economic losses
associated with electricity unavailability using supply-driven inputoutput
as a price model across 34 sectors. The results revealed
that exogenous shocks in electricity prices are responsible for
bringing significant fluctuations across the business cycle in the
country. Similarly, the overall output of Pakistan’s economy will
decrease by 24.89 rupees due to a 1-kilowatt-hour reduction in
electricity supply. Moreover, both forward and backward linkages
of Pakistan’s economy revealed that higher electricity allocation
coefficients pose significant output impacts on most sectors. We
conclude that indirect output impacts require due consideration to
avoid the underestimation problem due to total electricity shortages.
It is recommended that the government provide a social
and legal framework to boost the environmental sustainability and
economic activities in the textile, oil refining, production of
cement, and fertilizer sectors for sustainable economic growth.
Keywords
Renewable energy; energy shortages; sustainability; input-output model
Hrčak ID:
314058
URI
Publication date:
15.5.2023.
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