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The Impact of Socio-Economic Indicators on Sustainable Consumption of Domestic Electricity in Lithuania

Author

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  • Sergej Vojtovic

    (Department of Management and Human Resources Development, Alexander Dubcek University, 91150 Trencin, Slovakia)

  • Alina Stundziene

    (School of Economics and Business, Kaunas University of Technology, 44239 Kaunas, Lithuania)

  • Rima Kontautiene

    (School of Economics and Business, Kaunas University of Technology, 44239 Kaunas, Lithuania)

Abstract

Lithuania is one of the EU Member States, where the rate of energy consumption is comparatively low but consumption of electricity has been gradually increasing over the last few years. Despite this trend, households in only three EU Member States consume less electricity than Lithuanian households. The purpose of this research is to analyse the impact of socio-economic factors on the domestic electricity consumption in Lithuania, i.e., to establish whether electricity consumption is determined by socio-economic conditions or population’s awareness to save energy. Cointegration analysis, causality test and error-correction model were used for the analysis. The results reveal that there is a long run equilibrium relationship between residential electricity consumption per capita and GDP at current prices as well as the ratio of the registered unemployed to the working-age population. In consequence, the results of the research propose that improvement of living standards for Lithuanian community calls for the necessity to pay particular attention to the promotion of sustainable electricity consumption by providing consumers with appropriate information and feedback in order to seek new energy-related consumption practices.

Suggested Citation

  • Sergej Vojtovic & Alina Stundziene & Rima Kontautiene, 2018. "The Impact of Socio-Economic Indicators on Sustainable Consumption of Domestic Electricity in Lithuania," Sustainability, MDPI, vol. 10(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:2:p:162-:d:128191
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