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A Residential Energy Demand System for Spain

Author

Listed:
  • Xavier Labandeira

    (rede & Universidade de Vigo)

  • José M. Labeaga

    (FEDEA & UNED)

  • Miguel Rodríguez

    (rede & Universidade de Vigo)

Abstract

Sharp 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.

Suggested Citation

  • Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2005. "A Residential Energy Demand System for Spain," Econometrics 0503005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpem:0503005
    Note: Type of Document - pdf; pages: 38
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    households; energy; demand; spain; location;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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