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Sectoral analysis of electricity consumption during the COVID-19 pandemic: Evidence for unregulated and regulated markets in Colombia

Author

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  • Garcia-Rendon, John
  • Rey Londoño, Felipe
  • Arango Restrepo, Luis José
  • Bohorquez Correa, Santiago

Abstract

We conduct a sectoral analysis of electricity consumption during the Coronavirus disease 2019 (COVID-19) pandemic for the primary sectors that make up Colombia's unregulated and regulated markets. Applying a model of seemingly unrelated regression equations to examine data between February 2015 and May 2021, we evidence the recomposition of electricity consumption related to mandatory preventive isolation during the pandemic. Average consumption in the residential sector increased by 16.9% as working from home became prevalent. In contrast, unregulated market sectors subjected to quarantines presented a significant decrease in consumption, up to 32% in the financial sector. While industries that were not subjected to mandatory confinement, such as health, food (agriculture), and water supply, had no significant effect. Our results are relevant for informing demand forecasts and planning network expansions to guarantee the reliability of the supply as pandemic practices such as working from home become permanent.

Suggested Citation

  • Garcia-Rendon, John & Rey Londoño, Felipe & Arango Restrepo, Luis José & Bohorquez Correa, Santiago, 2023. "Sectoral analysis of electricity consumption during the COVID-19 pandemic: Evidence for unregulated and regulated markets in Colombia," Energy, Elsevier, vol. 268(C).
    • Handle: RePEc:eee:energy:v:268:y:2023:i:c:s0360544223000087
    DOI: 10.1016/j.energy.2023.126614
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    Cited by:

    1. Liu, Xiaomei & Li, Sihan & Gao, Meina, 2024. "A discrete time-varying grey Fourier model with fractional order terms for electricity consumption forecast," Energy, Elsevier, vol. 296(C).
    2. Lee, Chien-Chiang & Hussain, Jafar, 2023. "Energy sustainability under the COVID-19 outbreak: Electricity break-off policy to minimize electricity market crises," Energy Economics, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    COVID-19; Sectoral analysis; Electricity consumption; Seemingly unrelated regression (SUR); Colombia;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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