Electricity Demand in Pakistan: A Nonlinear Estimation

Saima Nawaz, Nasir Iqbal () and Saba Anwar
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Saba Anwar: Pakistan Institute of Development Economics (PIDE), Islamabad

The Pakistan Development Review, 2013, vol. 52, issue 4, 479-492

Abstract: This study attempts to estimate the electricity demand function for Pakistan using smooth transition autoregressive model over the period 1971-2012. The empirical results have shown that there is nonlinear relationship between electricity consumption and economic growth and also between electricity prices and consumption. The income elasticity of electricity is high while price elasticity is less than unity. Further, results have shown that the average real prices are below the optimal level. The weak relationship between electricity demand and electricity prices is primarily due to lack of alternatives for electricity. Continuous investment in power sector is required to fulfill the future electricity needs

Keywords: Electricity Demand; Smooth Transition Autoregressive Model; Pakistan (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (17)

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