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Estimating the efficiency in overall energy consumption: Evidence from Slovenian household-level data

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  • Dolšak, Janez
  • Hrovatin, Nevenka
  • Zorić, Jelena

Abstract

This study measures the efficiency of energy consumption in the residential sector in Slovenia. It extends the existing research on the estimation of electricity consumption efficiency by considering the consumption efficiency of multiple energy sources used in households. The detailed disaggregated data from two cross-sectional surveys conducted in the years 2010 and 2014, resulting in a sample of 6882 Slovenian households, is used in the estimation. The study includes energy services in a stochastic frontier framework through a sub-vector Shephard energy input distance function. Several household characteristics are considered in the estimation of energy consumption to control for household heterogeneity. The results reveal that Slovenian households have substantial potential for energy savings, which can be achieved through the replacement of inefficient energy-using capital stock and changed behavioural patterns. Specifically, we found the average inefficiency of energy consumption in Slovenian households to be 25.1% in 2010 and 23.3% in 2014, indicating a slight improvement in residential energy efficiency in the observed period, which is also in line with the EU energy-efficiency targets.

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  • Dolšak, Janez & Hrovatin, Nevenka & Zorić, Jelena, 2022. "Estimating the efficiency in overall energy consumption: Evidence from Slovenian household-level data," Energy Economics, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:eneeco:v:114:y:2022:i:c:s0140988322003851
    DOI: 10.1016/j.eneco.2022.106241
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