IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v65y2017icp161-171.html
   My bibliography  Save this article

Switch off the light, please! Energy use, aging population and consumption habits

Author

Listed:
  • Bardazzi, Rossella
  • Pazienza, Maria Grazia

Abstract

In parallel with worldwide population growth, Europe is experiencing a fast demographic shift widely studied but generally undervalued by policymakers. Population aging may imply smaller household sizes and more home-based energy consumption, which will change the energy mix. Consumer preference shifts and different attitudes towards environment among the generations determine additional effects. Study of the link between an aging population and energy demand is even more important for Italy because its energy dependence is almost complete and its population is aging quickly. This paper aims to assess the role of changing generational preferences in the energy expenditure trend in Italy by distinguishing between a pure age effect and a cohort effect. The decomposition shows significant differences in the shape of age and cohort effects, thus confirming that, beside an aging effect, we must consider that recent generations have a higher residential energy expenditure. Indeed, the energy culture of post war Italian generations seems more linked to thermal comfort (heating and air conditioning) than to environmental attitudes.

Suggested Citation

  • Bardazzi, Rossella & Pazienza, Maria Grazia, 2017. "Switch off the light, please! Energy use, aging population and consumption habits," Energy Economics, Elsevier, vol. 65(C), pages 161-171.
  • Handle: RePEc:eee:eneeco:v:65:y:2017:i:c:p:161-171
    DOI: 10.1016/j.eneco.2017.04.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988317301329
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2017.04.025?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Meier, Helena & Rehdanz, Katrin, 2010. "Determinants of residential space heating expenditures in Great Britain," Energy Economics, Elsevier, vol. 32(5), pages 949-959, September.
    2. Tullio Jappelli & Franco Modigliani, 2006. "The Age–Saving Profile and the Life-Cycle Hypothesis," Chapters, in: Lawrence R. Klein (ed.), Long-run Growth and Short-run Stabilization, chapter 2, Edward Elgar Publishing.
    3. Verbeek, Marno & Nijman, Theo, 1992. "Can Cohort Data Be Treated as Genuine Panel Data?," Empirical Economics, Springer, vol. 17(1), pages 9-23.
    4. Stephenson, Janet & Barton, Barry & Carrington, Gerry & Gnoth, Daniel & Lawson, Rob & Thorsnes, Paul, 2010. "Energy cultures: A framework for understanding energy behaviours," Energy Policy, Elsevier, vol. 38(10), pages 6120-6129, October.
    5. Schröder, Carsten & Rehdanz, Katrin & Narita, Daiju & Okubo, Toshihiro, 2015. "The decline in average family size and its implications for the average benefits of within‐household sharing," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 67(3), pages 760-780.
    6. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
    7. David J. McKenzie, 2006. "Disentangling Age, Cohort and Time Effects in the Additive Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 473-495, August.
    8. Dora L. Costa & Matthew E. Kahn, 2011. "Electricity Consumption and Durable Housing: Understanding Cohort Effects," American Economic Review, American Economic Association, vol. 101(3), pages 88-92, May.
    9. Hamza, Neveen & Gilroy, Rose, 2011. "The challenge to UK energy policy: An ageing population perspective on energy saving measures and consumption," Energy Policy, Elsevier, vol. 39(2), pages 782-789, February.
    10. Ana Ramos & Xavier Labandeira & Andreas Löschel, 2016. "Pro-environmental Households and Energy Efficiency in Spain," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 367-393, February.
    11. Sam Schulhofer‐Wohl, 2018. "The age‐time‐cohort problem and the identification of structural parameters in life‐cycle models," Quantitative Economics, Econometric Society, vol. 9(2), pages 643-658, July.
    12. Mills, Bradford & Schleich, Joachim, 2012. "Residential energy-efficient technology adoption, energy conservation, knowledge, and attitudes: An analysis of European countries," Energy Policy, Elsevier, vol. 49(C), pages 616-628.
    13. Benno Torgler & María A.García-Valiñas & Alison Macintyre, 2007. "Differences in Preferences Towards the Environment: The Impact of a Gender, Age and Parental Effect," CREMA Working Paper Series 2008-01, Center for Research in Economics, Management and the Arts (CREMA).
    14. Deaton, Angus & Paxson, Christina, 1994. "Intertemporal Choice and Inequality," Journal of Political Economy, University of Chicago Press, vol. 102(3), pages 437-467, June.
    15. László Mátyás & Patrick Sevestre (ed.), 2008. "The Econometrics of Panel Data," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-540-75892-1, July-Dece.
    16. Maréchal, Kevin, 2010. "Not irrational but habitual: The importance of "behavioural lock-in" in energy consumption," Ecological Economics, Elsevier, vol. 69(5), pages 1104-1114, March.
    17. Sarah Harper, 2013. "Population–Environment Interactions: European Migration, Population Composition and Climate Change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 55(4), pages 525-541, August.
    18. Espey, James A. & Espey, Molly, 2004. "Turning on the Lights: A Meta-Analysis of Residential Electricity Demand Elasticities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(1), pages 1-17, April.
    19. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, vol. 56(5), pages 931-945.
    20. Tullio Jappelli, 1999. "The Age‐Wealth Profile And The Life‐Cycle Hypothesis: A Cohort Analysis With A Time Series Of Cross‐Sections Of Italian Households," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 57-75, March.
    21. Richard S. J. Tol & Sebastian Petrick & Katrin Rehdanz, 2012. "The Impact of Temperature Changes on Residential Energy Use," Working Paper Series 4412, Department of Economics, University of Sussex Business School.
    22. Verbeek, M.J.C.M. & Nijman, T.E., 1992. "Can cohort data be treated as genuine panel data?," Other publications TiSEM d4eada8f-b91c-4fe7-a58c-7, Tilburg University, School of Economics and Management.
    23. Longhi, Simonetta, 2015. "Residential energy expenditures and the relevance of changes in household circumstances," Energy Economics, Elsevier, vol. 49(C), pages 440-450.
    24. Ironmonger, D S & Aitken, C K & Erbas, B, 1995. "Economies of scale in energy use in adult-only households," Energy Economics, Elsevier, vol. 17(4), pages 301-310, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Misbah Aslam & Eatzaz Ahmad, 2018. "Impact of Ageing and Generational Effects on Household Energy Consumption Behavior: Evidence from Pakistan," Energies, MDPI, vol. 11(8), pages 1-20, August.
    2. Rossella Bardazzi & Maria Grazia Pazienza & Maria Eugenia Sanin, 2021. "Life-cycle Characteristics and Energy Practices in Developing Countries: the Case of Mexico," Working Papers - Economics wp2021_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Rossella Bardazzi & Maria Grazia Pazienza & Maria Eugenia Sanin, 2022. "Energy practices and population cohorts: the case of Mexico," SN Business & Economics, Springer, vol. 2(11), pages 1-22, November.
    4. Dang,Hai-Anh H. & Lanjouw,Peter F., 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
    5. Dorothée Charlier & Bérangère Legendre, 2020. "Carbon Dioxide Emissions and aging: Disentangling behavior from energy efficiency," Working Papers 2020.13, FAERE - French Association of Environmental and Resource Economists.
    6. Rumman Khan, 2018. "Assessing cohort aggregation to minimise bias in pseudo-panels," Discussion Papers 2018-01, University of Nottingham, CREDIT.
    7. Longhi, Simonetta, 2015. "Residential energy expenditures and the relevance of changes in household circumstances," Energy Economics, Elsevier, vol. 49(C), pages 440-450.
    8. Dorothée Charlier & Bérangère Legendre, 2021. "Carbon Dioxide Emissions and Aging: Disentangling Behavior from Energy Efficiency," Post-Print hal-03877220, HAL.
    9. Bardazzi, Rossella & Pazienza, Maria Grazia, 2018. "Ageing and private transport fuel expenditure: Do generations matter?," Energy Policy, Elsevier, vol. 117(C), pages 396-405.
    10. Longhi, Simonetta, 2014. "Residential energy use and the relevance of changes in household circumstances," ISER Working Paper Series 2014-22, Institute for Social and Economic Research.
    11. Sarah Bridges & Simona Mateut, 2009. "Attitudes towards immigration in Europe," Working Papers 2009008, The University of Sheffield, Department of Economics, revised May 2009.
    12. Hendrik Schmitz & Reinhard Madlener, 2020. "Heterogeneity in price responsiveness for residential space heating in Germany," Empirical Economics, Springer, vol. 59(5), pages 2255-2281, November.
    13. D'Amato, Alessio & Giaccherini, Matilde & Zoli, Mariangela, 2019. "The Role of Information Sources and Providers in Shaping Green Behaviors. Evidence from Europe," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    14. D. Lederman & W.F. Maloney & J. Messina, 2011. "The Fall of Wage Flexibility," World Bank Publications - Reports 23575, The World Bank Group.
    15. Evren Ceritoglu, 2017. "Disentangling Age and Cohorts Effects on Home-Ownership and Housing Wealth in Turkey," Working Papers 1706, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
    16. Beatriz Muriel & Horacio Vera, 2015. "The Effects of Economic Growth on Earnings in Bolivia," Development Research Working Paper Series 08/2015, Institute for Advanced Development Studies.
    17. Päivi Kankaanranta, 2019. "A Cohort-Analysis of Age-Wealth Profile in Finland," Discussion Papers 130, Aboa Centre for Economics.
    18. John K Gibson & Grant M Scobie, 2001. "Household Saving Behaviour in New Zealand: A Cohort Analysis," Treasury Working Paper Series 01/18, New Zealand Treasury.
    19. Fateh Belaïd & Christophe Rault & Camille Massié, 2022. "A life-cycle theory analysis of French household electricity demand," Journal of Evolutionary Economics, Springer, vol. 32(2), pages 501-530, April.
    20. Grant M Scobie & John K Gibson, 2003. "Household Saving Behaviour in New Zealand: Why do Cohorts Behave Differently?," Treasury Working Paper Series 03/32, New Zealand Treasury.

    More about this item

    Keywords

    Energy consumption; Cohort effects; Pseudopanel data;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:65:y:2017:i:c:p:161-171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.