DefinePK

Abstract

<jats:p>This study examined household energy consumption pattern in Pakistan using Linear Approximate Almost Ideal Demand System (LA-AIDS). Price and expenditure elasticities estimated for the energy demand using a household income and expenditure data of the year 2011-12. The energy consumption expenditure pattern of rural and urban region is different. The study reveals that electricity is the most important and highly consumable source of energy for the household living in the country. Electricity and natural gas are the highly consumed fuel in the urban areas, whereas, electricity and firewood in the rural areas. The energy consumption expenditure is inelastic with respect to changes in income except for firewood for urban region. All the estimated expenditure elasticities of the energy types were found less than one indicating that energy consumption is the necessity for the household</jats:p>