Electricity Tariff Changes and Consumer Sentiment on Household Consumption Expenditure in Malaysia

• Main Authors: Saad N.M., Mohamed E.F., Arshad M.T.M., Mohayiddin A.L.
• Other Authors: 56070007300
• Format: Article
• Published: Springer 2024
• Subjects: Electricity tariff; Household consumption; Household expenditure; Input-output (IO); Scenario analysis

Purpose: This study investigates the impact of the current electricity tariff, represented by optimized tariff calculation, on Malaysian household�s consumption across different levels of income. Design/methodology/approach: The input-output (IO) model has vastly been used in many energy economics literature that presented the matrix of production between various sectors in an economy. This study aggregated the 124 subsectors in IO Price Table 2015 into 12 groups of consumption of goods and services based on Household Expenditure Survey 2019 (HES 2019) to meet the study� objectives. Findings: This study found that in all simulations, high-income earners would be highly affected by the tariff changes. The lower the increment level in electricity tariff rate, the lower the magnitude would be on the changes of household expenditure level. Research limitations/implications: Optimization in electricity tariff consumptions can pattern the Malaysian household�s consumption across different levels of income efficiently. Practical implications: Useful to all consumer in the Malaysia economic business sector to predict their energy consumption up to optimum level. Social implications: The study�s findings can benefit the society in optimiza their electricity consumption since everyone requires the energy for basic needs in their life. � 2022, The Author(s), under exclusive licence to The Indian Econometric Society.