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Analysis of Household Characteristics Affecting the Demand of PLN’s Electricity. An Observation on Small Households in City of Medan, Indonesia

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  • Tongam Sihol Nababan

Abstract

This study aimed to: (1) analyze the characteristics of households affecting energy consumption of simple household electricity, (2) analyze the probability of each of the factors affecting the energy consumption of small household electricity. The study was conducted in city of Medan in the period of January 2014 to September 2014 with samples of 143 small households as the customers of PLN (State Electricity Company) Medan, which use the low voltage of electricity named TR-1/450VA. Data were analyzed by using the logistic regression model. The estimation results indicated that: (1) the higher the willingness to pay (WTP) of households, the higher the tendency to consume electrical energy >100 KWh per month by 4.694 times than of the households with willingness to pay 100 KWh per month by 2.288 times than of the households residence in the suburbs, (3) increasingly unfavourable response to electrical quality, the higher the chance to consume electrical energy > 100 KWh per month.

Suggested Citation

  • Tongam Sihol Nababan, 2015. "Analysis of Household Characteristics Affecting the Demand of PLN’s Electricity. An Observation on Small Households in City of Medan, Indonesia," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(2), pages 79-92, June.
    • Handle: RePEc:khe:scajes:v:1:y:2015:i:2:p:79-92
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    References listed on IDEAS

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    More about this item

    Keywords

    Small household; electricity energy; willingness to pay; tariff; location;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory

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