What are the Factors Influencing Demand for Energy in Nigeria: A Sectoral Analysis
7 Pages Posted: 15 Aug 2016
Date Written: August 2, 2016
Nigeria is blessed with vast natural resources from Oil to Natural Gas, Hydroelectricity, biomass, coal etc., but up till now it cannot meet its domestic energy need, a lot of the energy consumed in the economy is being imported which results in a huge drain to its balance of payment. Access to energy services is a pre requisite for economic growth as well as improvement in human welfare. The paper applied a simple econometric technique to explore the relevant factors that influence sectoral and final energy demand in Nigeria. Using annual data from IEA covering the period of 1982 to 2014, the results show that price is significant in the transport sector while income appears crucial in all the sectors. The study recommends that price will be a viable tool in designing energy demand management policies in the transport, residential, services and other sectors excluding the industry.
Keywords: Energy, sectoral demand, regression, elasticities, price
JEL Classification: C40, Q40, Q41
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