Application of Alfred Marshall model for estimating Vietnam electricity demand

• Main Author: Ngoc Xuan Vu
• Format: Article
• Language: English
• Published: Growing Science 2020-01-01
• Series: Accounting
• Subjects: Gross Domestic Product (GDP); Elasticity of Demand (Ed); Power Purchasing Parity (PPP); Unemployment Rate (UR); Vietnam Electricity Group (EVN)
• Online Access: http://www.growingscience.com/ac/Vol6/ac_2019_8.pdf

This study aims to analysis the factors influencing on demand for Vietnam Electricity. In this paper, the author builds the Vietnam Electricity Quantity Demand function based on the Alfred Marshall model. The data used to build this function contains 276 observations (from Jan 1995 to December 2017). The author also analyzes the elasticity and the impacts of different factors to influence the Vietnam Electricity Quantity demanded. The study uses multiple linear regression model and the results indicate that all observations were meaningful when the level of significance was five percent. The results also indicate that demand for electricity will increase over the next few years and policy makers have to take some action for the development of the electricity industry.