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From natural gas to electric appliances: Energy use and emissions implications in Australian homes

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  • Hammerle, Mara
  • Burke, Paul J.

Abstract

Does variation in household vulnerability influence the effects of switching to new energy-efficient electrical appliances in the home? Using the Australian Capital Territory (ACT) Energy Efficiency Improvement Scheme (EEIS) as a case study, this paper examines impacts on energy consumption and greenhouse gas emissions from replacing natural gas heaters and hot water systems with more energy-efficient electric alternatives. To do so we use quarterly billing data over 2015–2020 for a sample of residential customers of the ACT's largest energy retailer, ActewAGL. Based on fixed effects panel regressions, we find that the electric replacements led to large decreases in residential natural gas consumption and smaller increases in consumption of electricity from the grid in energy content terms. Reductions in natural gas use from switching to electric hot water heaters were particularly large for the more vulnerable households in the scheme. The emissions effects depend on the emissions factor applied for grid electricity and underline the key role that residential electrification can play in decarbonization efforts if electricity is from low-emission sources.

Suggested Citation

  • Hammerle, Mara & Burke, Paul J., 2022. "From natural gas to electric appliances: Energy use and emissions implications in Australian homes," Energy Economics, Elsevier, vol. 110(C).
    • Handle: RePEc:eee:eneeco:v:110:y:2022:i:c:s0140988322002183
    DOI: 10.1016/j.eneco.2022.106050
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    Cited by:

    1. Paul Simshauser & Joel Gilmore, 2026. "Demand Shocks From the Gas Turbine Fleet in Australia's National Electricity Market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 70(1), pages 3-21, January.
    2. Hammerle, Mara & Burke, Paul J., 2022. "Solar PV and energy poverty in Australia's residential sector," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(04), January.
    3. Vincent P. Roberdel & Ioulia V. Ossokina & Vladimir A. Karamychev & Theo A. Arentze, 2023. "Energy-efficient homes: effects on poverty, environment and comfort," Tinbergen Institute Discussion Papers 23-082/V, Tinbergen Institute.
    4. Sun, Xinlu & Mi, Zhifu & Zhang, Jin & Li, Jinkai, 2024. "Driving factors of carbon emissions from household energy combustion in China," Energy Policy, Elsevier, vol. 186(C).
    5. Paul Simshauser, 2023. "The regulation of electricity transmission in Australia's national electricity market: user charges, investment and access," Working Papers EPRG2311, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    6. Paul Simshauser & Joel Gilmore, 2025. "Policy sequencing: on the electrification of gas loads in Australia’s National Electricity Market," Working Papers EPRG2509, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    7. Simshauser, P. & Gilmore, J., 2025. "Policy Sequencing: On the Electrification of Gas Loads in Australia’s National Electricity Market," Cambridge Working Papers in Economics 2528, Faculty of Economics, University of Cambridge.
    8. Sun, Chang & Feng, Lianyuan & Chen, Yu & Ju, Xiaolei & Zhao, Tianyi, 2026. "Renewable energy for domestic hot water production: Advances, challenges, and future directions - A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PB).

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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