Exploring the critical demand drivers of electricity consumption in Thailand

Gazi Uddin, Md. Bokhtiar Hasan, Han Phoumin, Farhad Taghizadeh-Hesary, Ali Ahmed and Victor Troster

Energy Economics, 2023, vol. 125, issue C

Abstract: In this study, we explore the critical demand drivers of electricity consumption in Thailand based on monthly data from 2002 to 2020. Using Autoregressive Distributed Lag (ARDL), cross-quantile correlation (CQC), Generalized Method of Moments (GMM), and Granger-causality-in-quantile approaches, we find that industrial production and oil production positively contribute to next month's aggregate and provincial energy consumption in Thailand, both in the short and long run. We also find that industrial production positively affects current electricity consumption, whereas electricity prices negatively affect current electricity consumption. Oil production, however, has no effect on current electricity consumption. Moreover, the CQC analysis finds evidence of cross-predictability running from industrial production and electricity prices to next month's electricity consumption at the extreme and median quantiles of the distribution. Further, industrial production, electricity prices, and oil production Granger-cause energy consumption at the extreme and median quantiles of the distribution. Nevertheless, we show that the Thai government's energy policies are ineffective for reducing electricity consumption. Our findings have crucial policy implications for the electricity market efficient allocation and its reform.

Keywords: Electricity markets; Demand drivers; Policy reforms; Thailand; ARDL; Cross-quantilogram (search for similar items in EconPapers)
JEL-codes: C22 L94 Q41 Q48 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0140988323003730
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:125:y:2023:i:c:s0140988323003730

DOI: 10.1016/j.eneco.2023.106875

Access Statistics for this article

Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

More articles in Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().