Energy efficiency plays a crucial role in sustaining economic growth, reducing emissions and ensuring energy security. Similar to many countries, Turkey has also emphasized energy efficiency and specified this issue as one of her primary goals. This study is the first one that analyzes electricity consumption and efficiency at the provincial level for Turkey based on a frontier analysis. It aims to estimate residential electricity demand function for Turkey between 2008 and 2015, to provide relative efficiency scores of provinces and to reveal determinants of inefficiency. Empirical results show that having higher income, inhabiting in densely populated provinces and living at detached houses increase electricity consumption. Turkish households in general do not use electricity for heating and cooling. When high income households are considered, evidence of electricity use for cooling is found. Based on inefficiency effects equation, being a well-educated female and being married improves efficiency. The provinces located in coastal areas and those with higher loss-illegal electricity use rates are more inefficient. The policies implemented after 2007 did not have a significant impact on efficiency.
Key words: Keywords: Residential, Efficiency in Electricity Use, Stochastic Frontier Analysis, Turkey. JEL Codes: Q40, L94. Article Language: EnglishTurkish
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