Household Electricity Approach - Criticisms

Criticisms

The primary criticism for the household electricity approach, as well as other electrical consumption approaches, centers around the assumptions made regarding the stability of the consistency of electrical consumption with GDP. Critics suggest that levels of stability can be altered significantly by the omission of such basic factors as shifts in the weather (Hanousek and Palda 2004, p. 14). The authors of electrical consumption approaches have admittedly been aware of the weakness of their assumptions and have made attempts to control for factors that would make electrical consumption inconsistent with GDP; however, critics do not see these attempts as being adequate enough (Hanousek and Palda 2006, p. 709).

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