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Household Formation and Residential Energy Demand: Evidence from Japan

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  • Carsten Schröder
  • Katrin Rehdanz
  • Daiju Narita
  • Toshihiro Okubo

Abstract

We use a large household panel for Japan (Keio Household Panel Survey) to estimate household-size economies in energy consumption. The household-size economies we obtain are significant and sizable: the per-capita energy-related spending of a two-adult household is only about two-thirds of the expenditure of a one-adult household. We use the estimates of household-size economies to explore how the demographic trend toward smaller-sized household units changes energy demand in the Japanese household sector. Between 2005 and 2010, for example, average household size in Japan decreased by about five percent. The resulting economy-wide loss in household-size economies increased energy demand in the household sector by about four percent

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1836.

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Length: 34 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:kie:kieliw:1836

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Keywords: energy consumption; household-size economies; demographic change; household formation;

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  1. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 110(4), pages 900-918, August.
  2. James M. Poterba, 2001. "Demographic Structure And Asset Returns," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 565-584, November.
  3. Phillip Swagel & Efraim Sadka & Assaf Razin, 2002. "The Aging of the Population and the Size of the Welfare State," IMF Working Papers, International Monetary Fund 02/68, International Monetary Fund.
  4. Axel Börsch-Supan, 2003. "Labor Market Effects of Population Aging," LABOUR, CEIS, CEIS, vol. 17(SpecialIs), pages 5-44, 08.
  5. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, Elsevier, vol. 29(2), pages 167-182, March.
  6. PESTIEAU, Pierre, . "The demographics of inequality," CORE Discussion Papers RP, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) -833, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  7. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, Elsevier, vol. 56(5), pages 931-945.
  8. Disney, Richard, 2007. "Population ageing and the size of the welfare state: Is there a puzzle to explain?," European Journal of Political Economy, Elsevier, Elsevier, vol. 23(2), pages 542-553, June.
  9. Ironmonger, D S & Aitken, C K & Erbas, B, 1995. "Economies of scale in energy use in adult-only households," Energy Economics, Elsevier, Elsevier, vol. 17(4), pages 301-310, October.
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