The demand for electricity in the GCC countries

Cointegration techniques are used to study the effects of economic variables on electricity demand in the GCC countries. A dynamic model is estimated using aggregate data for the six states spanning the period 1970–97. Statistical investigations confirm the existence of unit root in all time series employed in the study which called for the use of cointegration and error-correction methodologies. Empirical results indicate that both income and price have an impact on electricity consumption, and income and price policies could be effectively facilitated in electricity demand management.