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Fuel Demand Elasticities for Energy and Environmental Policies: Evidence from Household Data in Pakistan

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  • Nazish Tehseen

    (University of Sargodha, Mandi Bahuddin Campus, Pakistan)

  • Sheraz Ali Khan

    (University of Sargodha, Mandi Bahuddin Campus, Pakistan)

Abstract

Energy can be considered as condition for both financial growth and a higher set of living. Due to increase in demand of electricity Pakistan is facing many problems of energy. An incorporated plan is required to enhance the efficiency of energy. This study has investigated the most thoughtful economic problem of this era. Today electricity and gas have a great impact on economic life of any person. No one can deny the importance of these natural resources. I have tried my best to find out the weaknesses in these two dimensions and want to highlight the lack of interest of our government in the welfare of humans according to these resources. A middle income person always used the low appliances in their household budget. But our elite class always uses a big part of these resources in their luxuries and in hustle bustle of life. The analysis is based on the cross sectional data for about 16341 households covering the period 2010-2011. Ordinary Least Square and Tobit is used for electricity demand function estimation. From this research I have concluded that prices play a significant role in these resources of demand, but income shows insignificant effect.

Suggested Citation

  • Nazish Tehseen & Sheraz Ali Khan, 2017. "Fuel Demand Elasticities for Energy and Environmental Policies: Evidence from Household Data in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 6(3), pages 117-129, September.
    • Handle: RePEc:rfh:bbejor:v:6:y:2017:i:3:p:117-129
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    References listed on IDEAS

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    Cited by:

    1. Misbah Aslam & Eatzaz Ahmad, 2018. "Impact of Ageing and Generational Effects on Household Energy Consumption Behavior: Evidence from Pakistan," Energies, MDPI, vol. 11(8), pages 1-20, August.
    2. Aslam, Misbah & Ahmad, Eatzaz, 2023. "Untangling electricity demand elasticities: Insights from heterogeneous household groups in Pakistan," Energy, Elsevier, vol. 282(C).

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    More about this item

    Keywords

    energy; household; OLS;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D10 - Microeconomics - - Household Behavior - - - General

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