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The economic effect of Expo 2020 on the demand for electricity in Dubai economics, estimation, & Forecast (2001 – 2022)
Published in Innovare Academics Sciences Pvt. Ltd
Volume: 7
Issue: 5
Pages: 718 - 722
The main objective of this study is to analyze the impact of EXPO 2020 0n the demand for electricity in Dubai. This is done by first, constructing and estimating a simple econometric model for electricity using data for the period from 2001 to 2018. The empirical results show that the demand for electricity is price- and income-inelastic, with price and income elasticities of 0.96 and 0.80, respectively. On the other hand, the demand for electricity with respect to the number of users is demand elastic, with elasticity of 1.03. All estimated variables were found statistically significant at the 5% level of significance. The paper concludes that electricity consumption in Dubai grew very rapidly in the past and farther continues growth in the coming years where total electricity demand is projected to increase to 44816 GWh in 2019 and 44696 GWh in 2020, the time of Expo 2020, before it slows down a bit to reach 40606 GWh in 2022. The findings of the research also conclude that the electricity intensity reflects a faster economic growth rate relative to electricity growth rate. These findings imply that important policy implications are required especially when preparing for EXPO 2020, which requires significant investments, in this sector, over the coming years. © 2019 by Advance Scientific Research.
About the journal
JournalJournal of Critical Reviews
PublisherInnovare Academics Sciences Pvt. Ltd