A Residential Energy Demand System for Spain
AbstractSharp price fluctuations and increasing environmental and distributional concerns, among other issues, have led to a renewed academic interest in energy demand. In this paper we estimate, for the first time in Spain, an energy demand system with household microdata. In doing so, we tackle several econometric and data problems that are generally recognized to bias parameter estimates. This is obviously relevant, as obtaining correct price and income responses is essential if they may be used for assessing the economic consequences of hypothetical or real changes. With this objective, we combine data sources for a long time period and choose a demand system with flexible income and price responses. We also estimate the model in different sub-samples to capture varying responses to energy price changes by households living in rural, intermediate and urban areas. This constitutes a first attempt in the literature and it proved to be a very successful choice.
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Bibliographic InfoPaper provided by EconWPA in its series Econometrics with number 0503005.
Length: 38 pages
Date of creation: 08 Mar 2005
Date of revision:
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households; energy; demand; spain; location;
Other versions of this item:
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, . "A Residential Energy Demand System for Spain," Working Papers 2005-04, FEDEA.
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2005. "A Residential Energy Demand System for Spain," Working Papers 0501, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
- NEP-ENE-2005-04-16 (Energy Economics)
- NEP-GEO-2005-04-16 (Economic Geography)
- NEP-MIC-2005-04-16 (Microeconomics)
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