Empirical Analysis of Household Energy Demand Using Almost Ideal Demand System: A Case Study of District Muzaffarabad, Azad Kashmir, Pakistan

Ghulam Khan, Syeda Nazish Rashid () and Salik Mehboob ()

Energy Economics Letters, 2018, vol. 5, issue 1, 12-22

Abstract: Energy provides input for keeping sustainability in economic growth. This research work is designed to investigate the household energy demand and to explore the factors that determine household energy demand for different forms of energy consumption in district Muzaffarabad of the state of Azad Jammu and Kashmir, Pakistan. By using Linear Approximate Almost Ideal Demand System (LA-AIDS), this study estimated Marshallian price and expenditure elasticities of demand for four kinds of energy components including both rural and urban households. Using primary data LA-AIDS estimation indicated that demand for all forms of energy are price inelastic. Cross price relations indicated that electricity is a substitute for LPG, wood and fuel whereas LPG and fuel are complements. Electricity has most inelastic own-price elasticity which shows that households in Muzaffarabad are insensitive to changes in the price of electricity.

Keywords: Economic development; Energy; Linear approximate almost ideal Demand system; Households; Primary data; arshallian price and expenditure; elasticities of demand; Pakistan. (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5049/article/view/163/306 (application/pdf)
https://archive.aessweb.com/index.php/5049/article/view/163/2946 (text/html)

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:asi:eneclt:v:5:y:2018:i:1:p:12-22:id:163

Access Statistics for this article

More articles in Energy Economics Letters from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().