CONSUMPTION ANALYSIS OF ELECTRICITY IN SOUTHERN AREA OF JORDAN "EVIDENCE THROUGH PANEL DATA ANALYSIS (2001 – 2014)
Journal Title: European Journal of Business and Social Sciences - Year 2014, Vol 3, Issue 9
Abstract
This paper tests the electricity consumption in industrial sector of southern area of Jordan, were government is working on the implementation of measures in line with the objectives to improve fiscal of macro-economic situation. The analysis considered the data of industrial sector of textile, food, chemical, other manufacturing. The data used analyses of pooled OLS (cross section) and fixed effect methods, then output and price of electricity are utilized in analyses , logarithm of output and price of electricity, then the log of optimal used by the firm and log of electricity usage of firm, and the log of labor employed in firms. The results shows that both the pooled (cross section), and fixed effect can be used adequacy to simulate industrial consumption in this region of Jordan. Enhance, result indicates that demand across the sample 0.67 and the output electricity is 0.15, these results imply that 9% increase in the price of industrial electricity will lead to a 3% decreased in the demand of electricity.
Authors and Affiliations
Mohammad. Alalaya| Associate professor AlHussien Ben Talal University – Ma'an Administrative and Economics Faculty E-mail: dr_alaya@yahoo.com
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