An empirical analysis of electricity consumption in Cyprus

By T. Zachariadis, Nicoletta Pashourtidou. 2007

236 citations recorded by the source corpus.

The paper presents the first empirical analysis of electricity consumption in Cyprus. Using annual data from 1960 to 2004, we have examined electricity use in the residential and the services sectors, which are the fastest-growing electricity consumers in the island, and its interaction with income, prices and the weather. The analysis was performed with the aid of time series analysis techniques such as unit root tests with and without a structural break in levels, cointegration tests, Vector Error Correction models, Granger causality tests and impulse response functions. Results show long-term elasticities of electricity use above unity for income, and of the order of -0.3 to -0.4 for prices. In the short term electricity consumption is rather inelastic, mostly affected by weather fluctuations. Granger causality tests confirm exogeneity of electricity prices and bidirectional causality between residential electricity consumption and private income. The commercial sector is less elastic and reverts faster to equilibrium than the residential sector. Despite the relatively small sample size, results reported here are quite robust and can be used for forecasts and policy analyses.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/dcc1584cd528e631233ae1fcb7949a075019f77c

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Citations in the corpus

The Dynamics of Electricity Consumption and Economic Growth:A Revisit Study of Their Causality in Pakistan (2012, result): “The feedback effect between electricity consumption and economic growth is also validated in many studies, for instance, Yoo [40] for Korea, Zachariadis and Pashouortidou [41] for Cyprus, Tang [42] and Lean and Smyth [43] for Malaysia, Odhiambo [44] for South Africa, Ouédraogo [45] for Burkina Faso ”
A meta-analysis investigation of the direction of the energy-GDP causal relationship: implications for the growth-degrowth dialogue (2014, background): “We can divide the literature into groups of studies estimating energy input contributions from fossil fuels at an aggregate and disaggregate level (Bowden and Payne, 2009; Narayan and Wong, 2009; Reynolds and Kolodziej, 2008; Yoo, 2006a; Wolde-Rufael, 2010b; Zou and Chau, 2006), electricity consumpt”
The non-linear link between electricity consumption and temperature in Europe: A threshold panel approach (2008, background): “412 new countries joined the European Union: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia in 2004, Bulgaria and Romania in 2007.”
Aggregate electricity demand in South Africa: Conditional forecasts to 2030 (2010, methodology): “Zachariadis and Pashourtidou [20] used annual data (1960–2004) to estimate the electricity demand of the residential and service sector of Cyprus.”
Energy conservation policies, growth and trade performance: Evidence of feedback hypothesis in Pakistan (2015, background): “…energy consumption and economic growth has been found in, among others, Ebohon (1996), Yang (2000), Hondroyiannis et al., (2002), Yoo (2005), Zachariadis and Pashourtidou (2007), Wolde-Rufael (2006), Squalli (2007), Chen et al. (2007), Akinlo (2008), Narayan and Smyth (2009), Wolde-Rufael…”