An analysis of electricity demand in Namibia

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Date
2009
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Abstract
This study analyze the demand for electric ity in Namibia as a function of income and the price of electricity, using quarterly data from 1993 :QI to 2006 :Q4. The tudy employs various econometric techniques such a unit root tests and the Engle-Granger approach to testing cointegration so as to establish the long-run relationship between the variables. lt also applies an Error Correction Model (ECM) to cater for the short-run dynamics and to verify the long-run, or equilibrium relationship suggested by the cointegration test. The results show a significant impact of changes in income on the demand for electricity in both the long- and the short-run. Income elasticity is above unity ( 1.02) in the long-run and i 0.33 in the short run. Price, on the other hand, has the correct sign
Description
A theses submitted in partial fulfilment of the requirement for the degree of Master of Science in Economics
Keywords
Electricity, Electric power consumption, Power resources
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