Economics at your fingertips  

Determinants of household electricity consumption in South Africa

Yuxiang Ye, Steven Koch () and Jiangfeng Zhang

Energy Economics, 2018, vol. 75, issue C, 120-133

Abstract: Little is known about residential electricity demand in developing countries. In order to shed some light on this topic, this study combines data from South Africa's recent Income and Expenditure Survey with data from the National Energy Regulator of South Africa to estimate the determinants of residential energy demand. Combining electricity tariff data from the regulator with expenditure survey data from households provides an opportunity to explore the determinants of the demand for electricity. Due to the large number of zeroes in the dataset, a two-part model is employed. The results indicate that household income and electricity price are major demand determinants, and for the full two-part model, electricity demand is normal, as well as downward sloping, although inelastic in both cases; as expected, substitute fuel use impacts these elasticities. We also find that access to free basic electricity, a policy designed to improve access to electricity does what is expected. It is associated with increases in the probability that households purchase electricity and reduces total expenditure on electricity. Household demand is also higher for appliance-rich households in urban areas, especially if there are more household members and they live in larger dwellings.

Keywords: Electricity; Household; Two-part model; South Africa (search for similar items in EconPapers)
JEL-codes: Q41 Q48 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
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:

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 Dana Niculescu ().

Page updated 2019-09-27
Handle: RePEc:eee:eneeco:v:75:y:2018:i:c:p:120-133