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Habit Formation and Consumption of Energy for Heating: Evidence from a Panel of Danish Households

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  • Soren Leth-Petersen

Abstract

In this paper we ask if consumption of energy for space heating by households is habit forming. A model of intertemporal consumption allocation allowing for habit-forming preferences is estimated on a register-based panel data set with high quality information about consumption of natural gas for a sample of Danish households. Results indicate that preferences are weakly habit forming.

Suggested Citation

  • Soren Leth-Petersen, 2007. "Habit Formation and Consumption of Energy for Heating: Evidence from a Panel of Danish Households," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 35-54.
  • Handle: RePEc:aen:journl:2007v28-02-a02
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    Cited by:

    1. Salies, Evens, 2013. "Real-time pricing when some consumers resist in saving electricity," Energy Policy, Elsevier, vol. 59(C), pages 843-849.
    2. repec:spo:wpecon:info:hdl:2441/c6t1fl36hv9s7q89j8m3l01c9 is not listed on IDEAS
    3. Evens Salies, 2012. "Real-time pricing when consumers have saving costs," Working Papers hal-01070292, HAL.
    4. Kakeu, Johnson & Nguimkeu, Pierre, 2017. "Habit formation and exhaustible resource risk-pricing," Energy Economics, Elsevier, vol. 64(C), pages 1-12.

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    JEL classification:

    • F0 - International Economics - - General

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