Household Characteristics That Influence Simple Household Demand on Electricity

Tongam Sihol Nababan

doi:10.23917/jep.v16i1.938

Household Characteristics That Influence Simple Household Demand on Electricity

Tongam Sihol Nababan^(1*)

(1) Faculty of Economics, University of HKBP Nommensen, Medan
(*) Corresponding Author

Abstract

This research aims to analyze the characteristics of households that affect the electric energy consumption of simple households. The second objective is to analyze the probability of each of the factors affecting the electricity energy consumption of small household. The research was conducted in Medan City in the period of March 2014 to November 2014 with samples of 143 small households, the customer of PT. PLN (Persero) Medan, which use the power of electricity for TR-1 /450VA. Data were analyzed by using the logistic regression model. The estimation results indicated that (1) the higher the willingnes to pay (WTP) of households, the higher the tendency to consume elec trical energy per month. (2) the closer the households residence to the city center, the higher the tendency to consume electrical energy than of the households residence in the suburbs, (3) increasingly unfavourable response to electrical quality, the higher the opportunity to consume a greater electric power monthly.

Keywords

simple household; electric energy; willingness to pay; electricity rates

Full Text:

PDF

References

Agresti, A. 2002. Categorical data analysis. New Jersey: John Wiley & Sons, Hoboken.

Amarullah, M. 1983. The pricing of electricity in Indonesia, Dissertation, The Faculty of the Department of Economics, University of Houston, Texas, USA. (tidak dipublikasikan).

Amarullah, M. 1984. Electricity demand in Indonesia: An econometric analysis. Publikasi LMK, No. 01-EP-84, Jakarta: Pusat Penyelidikan Masalah Kelistrikan, PLN.

Bartels, R., and Denzil G. Fiebig. 2000. Residential end-use electricity demand: results from a designed experiment. The Energy Journal, Vol. 21., No. 2, 2000, pp. 51-81.

Garbacz, C. 1984. A National micro-data based model of residential electricity demand: New evidence on seasonal variation. Southern Economic Journal, Vol. 51, Iss.1, July 1984, pp. 235-249.

Guertin, C., Subal C. Kumbhakar, and Ananta K. Duraiappah. 2003. Determining demand for energy services: Investigating income-driven behaviours. International institute for sustainable development, 161 Portage Avenue East, 6 Floor Winnipeg, Manitoba, Canada, http://www.iisd.org/pdf/2003/energy determining-demand.pdf [13 Oktober 2010].

Halvorsen, B., Bodil M. Larsen, and Runa Nesbakken. 2003. Possibility for hedging from price increases in residential energy demand. Discussion Papers No. 347, April 2003, Statistics Norway, Research Department. http://www.ssb.no/publiskasjoner/DP/dp.347.pdf [14 Oktober 2010].

Halvorsen, R. 1975. Residential demand for electric energy. The Review of Economics and Statistics, Vol. 57, Issue 1, pp. 12-18.

Hosmer, D. W. dan Lemeshow, S. 2000. Applied logistic regression. New York: John Wiley and Son.

Jung, T.Y. 1993. Ordered logit model for residential electricity demand in Korea. Energy Economics, Vol.15, pp. 205-209.

Kuswara, U. D. 1997. Kajian ringkas tentang energi listrik di Indonesia: Antisipasi kebutuhan dan mismanajemen dam pengelolaan. Kelola, Gadjah Mada University Business Review, No. 15/VI/1997, pp. 105 – 114.

Larsen, B. M., and Runa Nesbakken. 2002. How to quantify household electricity end-use consumption., Discussion Papers No. 346, March 2002, Statistics Norway, Research Department,

http://www.ssb.no/publiskasjoner/DP/dp.346.pdf [14 Oktober 2011].

Maddigan, R. J., Wen S. Chern, and Colleen Gallagher Rizy. 1983. Rural residential demand for electricity. Land Economics, Vol. 59, No. 2, May 1983, pp. 150-162.

McKean, J. R., and Wendell D. Winger 1992. Simultaneous equation estimates of electricity demand for the rural south: Revenue projection when prices are administered. Journal of Forecasting, Vol. 11, pp. 225-240.

Meetamehra. 2002. Demand forecasting for electricity”, http://www.teriin.org/division/regdiv/docs/ft13.pdf. [11September 2008].

Nam, P. K., and Tran Vo Hung Son. 2005. Household demand for improved water services in ho chi min city: a comparison of contingent valuation and choice modelling estimates. Research Report No. 2005-RR3, pp.1-23, Economy and Environment Program for Southeast Asia (EEPSEA), Singapore, http://www. eepsea.org [9 Agustus 2010].

Rab, M. A. 2001. Household energy demand in the south asia: an approach towards discrete/Continuos Models, Dissertation, The University of Texas at Dallas.

Reiss, P. C., Matthew W. White. 2001. Household electricity demand, Revisited. http://www.nberg.org/ [12 Mei 2009].

Resosudarmo, dan Tanujaya. 2002. Energy demand in indonesia: past and future trend. The Indonesian Quarterly, Vol. XXX/2002, No.2, pp.158 – 174.

DOI: 10.23917/jep.v16i1.938