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Household formation and residential energy demand: Evidence from Japan

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

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.

Suggested Citation

  • Schröder, Carsten & Rehdanz, Katrin & Narita, Daiju & Okubo, Toshihiro, 2013. "Household formation and residential energy demand: Evidence from Japan," Kiel Working Papers 1836, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1836
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    Cited by:

    1. Ha-Hyun Jo & Minwoo Jang & Jaehyeok Kim, 2020. "How Population Age Distribution Affects Future Electricity Demand in Korea: Applying Population Polynomial Function," Energies, MDPI, vol. 13(20), pages 1-17, October.

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    More about this item

    Keywords

    energy consumption; household-size economies; demographic change; household formation;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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