Household Inefficient Electricity Consumption and Its Determinants in Rural Areas

Using stochastic frontier analysis (SFA) technique on the main data obtained by stratified random sampling, we have examined the inefficiency of families’ energy use in rural areas in this work. The households’ average efficiency is 77.25%, which suggests that there is a 22.75% underlying inefficiency. The stochastic demand frontier shows that minimum wattage requirements and government subsidies have a considerable beneficial influence on residential power usage. Unexpectedly, the number of living rooms does not cause an increase in electricity usage in rural areas. Overall, we discovered that rural regions’ inefficient electricity use is more a result of supply-side limitations than of demand-side ones.