Analysis of Household Characteristics Affecting The Demand of PLN's Electricity: An Observation on Small Households in City of Medan, Indonesia

Academic Journal of Economic Studies, Vol. 1, No. 2, June 2015, pp. 79–92, ISSN 2393-4913, ISSN On-line 2457-5836.

14 Pages Posted: 3 Sep 2015

See all articles by Tongam Sihol Nababan

Tongam Sihol Nababan

University of HKBP Nommensen, Faculty of Economics

Date Written: June 2015

Abstract

This study aimed to: (1) analyze the characteristics of households affecting energy consumption of simple household electricity, (2) analyze the probability of each of the factors affecting the energy consumption of small household electricity. The study was conducted in city of Medan in the period of January 2014 to September 2014 with samples of 143 small households as the customers of PLN (State Electricity Company) Medan, which use the low voltage of electricity named TR-1/450VA. Data were analyzed by using the logistic regression model.

The estimation results indicated that: (1) the higher the willingness to pay (WTP) of households, the higher the tendency to consume electrical energy > 100 KWh per month by 4.694 times than of the households with willingness to pay < Rp 100 thousand per month, (2) the closer the households residence to the city center, the higher the tendency to consume electrical energy > 100 KWh per month by 2.288 times than of the households residence in the suburbs, (3) increasingly unfavourable response to electrical quality, the higher the chance to consume electrical energy > 100 KWh per month.

Keywords: Small household, electricity energy, willingness to pay, tariff, location

JEL Classification: B41, C21, C42, D21, R21

Suggested Citation

Nababan, Tongam Sihol, Analysis of Household Characteristics Affecting The Demand of PLN's Electricity: An Observation on Small Households in City of Medan, Indonesia (June 2015). Academic Journal of Economic Studies, Vol. 1, No. 2, June 2015, pp. 79–92, ISSN 2393-4913, ISSN On-line 2457-5836.. Available at SSRN: https://ssrn.com/abstract=2654539

Tongam Sihol Nababan (Contact Author)

University of HKBP Nommensen, Faculty of Economics ( email )

Jln. Sutomo No. 4A
Medan, North Sumatra 20118
Indonesia
08126411543 (Phone)

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