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Determinants of Gas Energy Consumption in Pakistan: An Econometric Analysis (1971-2006)

By Naeem Ur Rehman Khattak Khattak and Anwar Hussain Hussain

Abstract

The paper evaluates the determinants of gas energy consumption in Pakistan during 1971-2006 using econometric techniques. Time series data ranging from 1971 to 2006 has been taken from Economic Survey of Pakistan (Statistical Supplement, 2006-07). For the analysis of the data, Augmented Dickey Fuller (ADF) test, Jhonson Co-integration test (likelihood ratio statistic) and the method of ordinary least square have been used. The results indicate that 1% each increase in the gas energy consumption in the household, cement, fertilizer, power and industry sector brings 1.04%, 1.03%, 0.95%, 0.97% and 1.37% change in the total energy consumption respectively. The coefficients of all the explanatory variables are statistically significant at both 5% and 1% level of significance. It is recommended to increase the gas energy supply to meet the requirement in the household and industry sector.

Topics: B22 - Macroeconomics, N7 - Transport, Trade, Energy, Technology, and Other Services
Year: 2009
OAI identifier: oai:mpra.ub.uni-muenchen.de:41993

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