Cross-sectional Electricity Demand Analysis in Egypt

نوع المستند : المقالة الأصلية

المؤلفون

1 Economics Demonstrator at Higher Institute for Administrative Science, Studied Economics at the faculty of commerce English section and specialized in masters' degree in Economic Development.

2 Economics Lecturer at Economics Department , Faculty of Commerce-Zagazig University . Research interests are in Economic Development.

المستخلص

tract This paper analyzes the electricity demand in Egypt, as a result of the continuing increase in the electric power sector. There comes the importance of focusing on current electric power situation by discussing and analyzing the demand for electricity, using panel dataset for 8 sectors (which are: industrial (C), industrial (D), residential, commercial, agricultural, street-lighting, public utilities and governmental sectors) from 2002 to 2013. Electric power stations mainly depend on nonrenewable energy sources by 85 percent, Unit root (ADF) test, Bounds Testing, Autoregressive Distributed Lag (ARDL), and Vector Error Correction Model (VECM) are used as a framework to estimate both, long- and short-run coefficients and allow for deterministic trends. Results indicate that there is cointegration among variables in electricity demand function. The study also recommended the need for rationalization of energy consumption, more diversifying energy sources to ensure efficiently resources allocating and the tendency to renewable sources.