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

Khattak, Naeem Ur Rehman Khattak and Hussain, Anwar Hussain (2009): Determinants of Gas Energy Consumption in Pakistan: An Econometric Analysis (1971-2006). Published in: PUTAJ Humanities and Social Sciences , Vol. 16, (2009): pp. 57-66.

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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.

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