Determinants Of Electricity Demand Research Articles

Determinants of electricity demand in Ghana: the role of power crises

ABSTRACT The crucial role of electricity in prosecuting the development agenda of economies is widely known. Yet some key variables are lacking in the assessment of electricity demand determinants. One such variable is power crises. This study re-visits the discussion by investigating the role of power crises on electricity demand. We employ data from 1980 to 2018 to examine how power crises in general and in particular the 2012–2015 severe power crisis in Ghana impacts electricity consumption. Using various econometric techniques, we find that power crises have adverse effects on electricity demand in the long run. The 2012–2015 episode of power crisis in particular, has potentially led to consumers reconsidering their sources of energy by reducing electricity demand in the long term.

Estimating and forecasting residential electricity demand in Odisha

AbstractThe growing demand for electricity has put pressure on generation of electricity based on fossil fuel, resulting in emission of carbon dioxide. In order to design policy for demand side management, proper knowledge on determinants of electricity demand as well as prediction of future demand is required. However, study on estimation and forecasting of residential demand in developing countries like India has received less attention. This study is the first attempt to estimate and forecast residential electricity demand in the state of Odisha, which is the pioneer of electricity reform in India. It employs ARDL model to estimate residential electricity demand; while ARIMA, VAR and VEC models are employed to forecast future demand. The results show that income and price of electricity are significant determinants of residential electricity demand. The higher price elasticity compared to income elasticity reveals that price could be used as an effective instrument for demand side management. The forecast results show that VAR has the lowest error, which predicts per capita residential electricity demand to be double by 2030–31. This would help the policy makers to plan for demand side management and electricity generation so as to avoid shortage of electricity supply.

Determinants of Residential Electricity Consumption: A Comparison between Urban and Rural Households in Kandy District in Sri Lanka

This study attempts to identify the key determinants of residential demand for electricity in rural and urban households in Sri Lanka. Yearly data for 108 randomly selected households (54 from each - urban and rural) for a five years period were used for the estimation. Fixed effect model is used to determine the responsiveness of electricity consumption to its own price, differences in price, price of alternative fuel, income and variables relating to the social-economic characteristics of the household. Price elasticity and income elasticity for electricity in the urban households are estimated to be -0.38 and 0.15 while they are -0.04 and 0.14 for rural households, respectively, which confirm the previous findings, as the electricity is inelastic and a normal good. Furthermore, the estimated model demonstrates the importance of including the household level information for identifying the determinants of electricity demand, which is not possible using aggregate level data in a country.