The Determinants of Household Electricity Demand in Marginal Ecuador: “A Case Study at Monte Sinai”

Abstract

Electricity demand has grown in almost 75% in the last ten years, and with the addition of 900 thousand new families from rural and marginal areas to the electricity grid, total electricity demand may increase significantly. The understanding of the specific energy consumption patterns of these sectors could explain the influence on the electricity demand and lead the regional government policy to promote their formal electricity access. However, micro level analysis may show different correlations among determinants than those usually reported in previous macro models. The data was taken from a convenience sample of 190 socio-economic surveys at Monte Sinai in order to obtain a system of electricity demand equations and elasticity using Tobit regression model.