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Consumption of electricity in Punjab: Structure and growth

Author

Listed:
  • Bhargava, Nisha
  • Singh, Baldev
  • Gupta, Shakuntla

Abstract

Electricity has played a pivotal role in the development of Punjab economy. Of late there has been a steep rise in the demand for electricity in the state. The present study undertakes a holistic view of growth of demand for electricity in the state. The technique applied is multiple regression and secondary data is used for the purpose of analysis. The study concludes that demand for electricity in the state is price inelastic but income elastic for majority of consuming sectors. An important policy implication thereof is that price hike will be ineffective in regulating and managing demand unless price is varied in an hourly basis. Therefore, the state has to resort to other demand-side management (DSM) measures, such as improving efficiency of electricity use and its conservation. Considering the high income elasticity of electricity demand, sufficient electricity-generating capacity needs to be created, since demand is expected to grow at an accelerated rate in future. This calls for a comprehensive electricity policy. The study further concludes that in the long run, price-demand as well as income-demand relationship in case of electricity is likely to remain uncertain especially in the post-reform era.

Suggested Citation

  • Bhargava, Nisha & Singh, Baldev & Gupta, Shakuntla, 2009. "Consumption of electricity in Punjab: Structure and growth," Energy Policy, Elsevier, vol. 37(6), pages 2385-2394, June.
    • Handle: RePEc:eee:enepol:v:37:y:2009:i:6:p:2385-2394
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    References listed on IDEAS

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    1. Smil, Vaclav & Kuz, Tony, 1976. "European energy elasticities," Energy Policy, Elsevier, vol. 4(2), pages 171-175, June.
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    Cited by:

    1. Trivedi, Abhinav & Verma, Amit Ranjan & Kaur, Supreet & Jha, Bhaskar & Vijay, Vandit & Chandra, Ram & Vijay, Virendra Kumar & Subbarao, P.M.V. & Tiwari, Ratnesh & Hariprasad, P. & Prasad, Rajendra, 2017. "Sustainable bio-energy production models for eradicating open field burning of paddy straw in Punjab, India," Energy, Elsevier, vol. 127(C), pages 310-317.
    2. Tiwari, Aviral Kumar & Menegaki, Angeliki N., 2019. "A time varying approach on the price elasticity of electricity in India during 1975–2013," Energy, Elsevier, vol. 183(C), pages 385-397.
    3. Srinivasan, Sunderasan, 2013. "Electricity as a traded good," Energy Policy, Elsevier, vol. 62(C), pages 1048-1052.
    4. Cabello Eras, Juan José & Mendoza Fandiño, Jorge Mario & Sagastume Gutiérrez, Alexis & Rueda Bayona, Juan Gabriel & Sofan German, Stiven Javier, 2022. "The inequality of electricity consumption in Colombia. Projections and implications," Energy, Elsevier, vol. 249(C).

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