| Author(s) | Mahdi H. Al-Salman |
| Affiliation | College of Business Administrative, Kuwait University, P.O.Box 5486, Safat 13055, Kuwait |
| Title | Household Demand for Energy in Kuwait |
| Source | Journal of King Saud University. Administrative Sciences. Volume 19, No 2. (2007/1427) |
| Abstract | This paper models and estimates energy demand by the household sector using the top-down or the two-level approach. The discussion has been developed to include a breakdown of household consumption by fuel type. It also simulates the developed model under three scenarios and presents an analysis of the results. The empirical results indicate that short and long-run energy consumption and the level of economic activity are interrelated. The model simulation shows that energy consumption varies directly with economic growth. It also illustrates that an increase of 100% in all nominal energy prices will lead to a reduction in household energy demand of 28% by the year 2010. Simulation results clearly demonstrate that the potential for energy conservation does exist in Kuwait in the household sector and particularly as regards electricity consumption. Moreover, fuel switching will be in favor of oil products only when energy prices increase substantially as in the case of the extreme scenario. |
