A panel data analysis of electricity demand in the Pakistani industrial sector

ABSTRACT

The analysis uses data taken from the World Bank Enterprise Surveys for Pakistan to construct a panel dataset for 402 firms over 4 years. This is used to determine the elasticity of electricity demand with respect to the price of electricity across Pakistani firms. The electricity demand analysis finds that the price elasticity of electricity demand across the sample of firms is −0.57.

KEYWORDS:

• Demand
• elasticity
• electricity
• manufacturing
• Pakistan

Notes

¹ The question would be far easier to answer if the question on electricity expenditures in the Enterprise Survey had separated out expenditures on outside electricity and expenditures on own-generated electricity. Unfortunately, this distinction was not made clear in the survey.