Analysis of residential electricity energy demand in Tanzania: the case of Dar es Salaam region

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University of Dar es Salaam
The main objective in this study has been to examine the determinants of the residential demand for electricity. Admittedly, there have been numerous empirical studies of electricity demand in developed countries. However, energy demand models from a developing country perspective may require a different framework. For a country like Tanzania, economic growth and the structural changes associated with rapid development suggest that income and price elasticities will not be stable. The study focuses mainly on the residential energy markets of Dar es Salaam as a case study. Quantitative methods of analysis of the time-series data covering the period 1987-2004, are employed. A single equation model based on the flow adjustment model of appliance stock is regressed using the ordinary least square (OLS) strategy. This study reports a positive own price coefficient which is an ineligible combination in explaining the model. In addition, there is no statistical evidence of substitution potential between electricity and kerosene in households. However, nominal income provides a significant explanatory power for the model. These results imply that there are few options available to residential energy consumers in response to changes in the price of energy. The lack of price responsiveness has one important implication, in that price policy itself is not a sufficient policy instrument to manage energy demand and other complementary policies are required.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class Mark (THS EAF HF5686.E35S55)
Electric power consumption, Tanzania, Dar es Salaam region
Simbila, S. S (2007) Analysis of residential electricity energy demand in Tanzania: the case of Dar es Salaam region, Master dissertation, University of Dar es Salaam