Latent electricity demand for households: Unveiling the impact of power supply on appliance acquisition and usage in Bihar, Eastern India

Eshita Gupta, Damini Thakur and Gaurav Mukherjee

Energy Policy, 2025, vol. 204, issue C

Abstract: This study focuses on quantifying the latent demand that would manifest if 24x7 power supply were provided to residential consumers in Bihar. Annual electricity consumption exhibits an increasing trend with power supply, years of electrification, wealth indicators, and several other socio-economic factors. To estimate latent electricity demand in the short-run and long-run, a two-stage discrete-continuous model is estimated using the conditional expectation correction method. Our findings indicate that household residential electricity consumption on average would rise by 17% (275 kWh) in the short-run and 29% (448 kWh) in the long-run following the aforementioned enhancement in power supply. Policymakers can leverage this knowledge to make informed decisions to meet the growing energy needs of Bihar and uplift the living standards of its populace.

Keywords: Latent electricity demand; Discrete-continuous model; Power supply; Appliance acquisition (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:204:y:2025:i:c:s0301421525001715

DOI: 10.1016/j.enpol.2025.114664

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