Energy Demand Elasticity in Pakistan: An Inter-temporal Analysis from Household Survey Data of PIHS 2001-02 and PSLM 2010-11

Abstract

This study analyses household consumption patterns of different forms of energy in Pakistan over two survey rounds (2001-02 and 2010-11), while comparison with an earlier study based on 1984-85 data extends the analysis over a 25 years horizon. Income elasticities of different types of fuels have been computed using the Extended Linear Expenditure System. The analysis shows a differential pattern of energy use across the urban and rural areas of the country as well as changes over time, with rural households spending proportionately more on fuels throughout this period.