The causes of electricity theft: An econometric analysis of the case of Turkey

This paper, attempts to comprehend and analyze the determinant socio-economic background of illegal electricity consumption by estimating an energy theft equation through applying different econometric techniques. For the estimation, provincial electricity theft and socio-economic data for the period of 2002–2010 are employed. In Turkey, electricity theft leads to loss of substantial amount of dollars annually. This is a primary and thorough study in literature that aims to help prevent electricity theft in Turkey by determining the underlying socio-economic drives. Income, social capital, rural population rate, temperature index, Southeastern Anatolian Region dummy, and agricultural production rate were identified as significant determinants of electricity theft. Certain policy advice is also provided based on the findings.