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Electricity demand modeling in Saudi Arabia: Do regional differences matter?
The paper examines the electricity demand behavior for Saudi Arabia, using annual data for the period of
1990–2016, at regional level. The study finds that income, price and population are the main drivers of electricity
demand at regional level. Although, the impacts vary across regions (central, eastern, southern and
western), the estimated elasticities all are statistically significant, in both long and short run, and have the
expected signs for all the regions. The income, price and population elasticities range from 0.10 to 0.93, from
-0.63 to -0.06, and from 0.24 to 0.95, respectively, across regions in the long run. In the short run these intervals
are (0.05, 0.47), (−0.27, −0.01) and (0.13, 1.49) respectively for income, price and population across the
regions. The findings reported in this paper, should assist policy makers to develop insights about the potential
regional impact of changes to electricity prices, income and population patterns.
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