An Elasticity based Deterministic Study of Relationship between Factors Effecting Domestic Energy usage in Pakistan

摘要

Pakistan's energy sector is in chaos, policy to increase dependency on fossil fuel has played a big part in increase of circular debts. Policy making depends on various factors and forecasting correct requirements for energy is one of the key factors for policy making thus Predicting energy demand and considering the impact of macroeconomic indicators on household power consumption was always part of effective energy policy planning. The paper presents a suitable model that contains macro-indicators like GDP, real price, consumers, population as independent variable and sales of electricity unit as dependent variables, through the use of the method revealing the econometric relationships. Particularly considering the effects of elasticities that are influencing the model for the prediction of household electricity demand are modeled. The study period for this research was 1980-2015. The paper concludes the factors which are responsible for increase in energy demand of the country which may help government planning commission to improve the energy policies for future.