The relationship between electricity consumption, electricity prices and GDP in Pakistan

Faisal Jamil and Eatzaz Ahmad

Energy Policy, 2010, vol. 38, issue 10, 6016-6025

Abstract: This study analyzes the relationship among electricity consumption, its price and real GDP at the aggregate and sectoral level in Pakistan. Using annual data for the period 1960-2008, the study finds the presence of unidirectional causality from real economic activity to electricity consumption. In particular, growth in output in commercial, manufacturing and agricultural sectors tend to increase electricity consumption, while in residential sector, growth in private expenditures is the cause of rising electricity consumption. The study concludes that electricity production and management needs to be better integrated with overall economic planning exercises. This is essential to avoid electricity shortfalls and unplanned load shedding.

Keywords: Cointegration; Electricity; VECM (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (146)

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