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Price Sensitivity of Residential Energy Consumption in Norway

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    Abstract

    The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993, 1994 and 1995. The parameter estimates are stable within a 95 per cent confidence interval. However, the estimated impact of the energy price variable on energy consumption is considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households.

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    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp232.pdf
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    Bibliographic Info

    Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 232.

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    Date of creation: Sep 1998
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    Handle: RePEc:ssb:dispap:232

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    Related research

    Keywords: Household energy consumption; space heating system; discrete-continuous choice; parameter stability.;

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    1. M.F. Morss & J.L. Small, 1989. "Deriving Electricity Demand Elasticities from a Simulation Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-76.
    2. Bernard, J.T. & Bolduc, D. & Belanger, D., 1993. "Quebec Residential Electricity Demand: A Microeconometric Approach," Papers 9334, Laval - Recherche en Energie.
    3. Henley, Andrew & Peirson, John, 1998. "Residential energy demand and the interaction of price and temperature: British experimental evidence," Energy Economics, Elsevier, vol. 20(2), pages 157-171, April.
    4. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
    5. Poyer, David A. & Henderson, Lenneal & Teotia, Arvind P. S., 1997. "Residential energy consumption across different population groups: comparative analysis for Latino and non-Latino households in USA," Energy Economics, Elsevier, vol. 19(4), pages 445-463, October.
    6. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-38, September.
    7. Garbacz, Christopher, 1983. "A model of residential demand for electricity using a national household sample," Energy Economics, Elsevier, vol. 5(2), pages 124-128, April.
    8. Yamasaki, Eiji & Tominaga, Norio, 1997. "Evolution of an aging society and effect on residential energy demand," Energy Policy, Elsevier, vol. 25(11), pages 903-912, September.
    9. Rudolf K.-H. Dennerlein, 1987. "Residential Demand for Electrical Appliances and Electricity in the Federal Republic of Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 69-86.
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    Cited by:
    1. Bente Halvorsen & Bodil M. Larsen, 1999. "Changes in the Pattern of Household Electricity Demand over Time," Discussion Papers 255, Research Department of Statistics Norway.

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