Open AccessInvestigating the residential electricity consumption-income nexus in Morocco: a stochastic impacts by regression on population, affluence, and technology analysis
Author(s) -
Charifa Haouraji,
Badia Mounir,
Ilham Mounir,
Laila Elmazouzi,
Abdelmajid Farchi
Publication year - 2022
Publication title -
international journal of power electronics and drive systems/international journal of electrical and computer engineering
Language(s) - English
Resource type - Journals
eISSN - 2722-2578
pISSN - 2722-256X
DOI - 10.11591/ijece.v12i2.pp1089-1101
Subject(s) - gross domestic product , divisia index , economics , electricity , per capita , urbanization , nexus (standard) , population , consumption (sociology) , agricultural economics , econometrics , energy consumption , energy intensity , economic growth , engineering , demography , social science , sociology , electrical engineering , embedded system
In a comprehensive LMDI-STIRPAT-ARDL framework, this research investigates the residential electricity consumption (REC)-income nexus in Morocco for the period 1990 to 2018. The logarithmic mean Divisia index (LMDI) results show that economic activity and electricity intensity are the leading drivers of Morocco’s REC, followed by population and residential structure. And then, the LMDI analysis was combined with stochastic impacts by regression on population, affluence, and technology (STIRPAT) analysis and the bounds testing approach to search for a long-run equilibrium relationship. The empirical results show that REC, economic growth, urbanization, and electricity intensity are cointegrated. The results further show that there exists a U-shaped relationship between per capita gross domestic product (GDP) and REC: an increase in per capita GDP reduces REC initially; but, after reaching a turning point (the GDPPC level of 17,145.22 Dh), further increases in per capita GDP increase REC. Regarding urbanization, the results reveal that it has no significant impact on Morocco’s REC. The stability parameters of the short and long-term coefficients of residential electricity demand function are tested. The results of these tests showed a stable pattern. Finally, based on the findings mentioned above, policy implications for guiding the country's development and electricity planning under energy and environmental constraints are given.