IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v143y2020ics0301421520303505.html
   My bibliography  Save this article

Access to and consumption of natural gas: Spatial and socio-demographic drivers

Author

Listed:
  • Curtis, John
  • Tovar, Miguel Angel
  • Grilli, Gianluca

Abstract

This research examines fuel choice for residential heating, with a particular focus on switching to natural gas from carbon intensive alternatives. In the context of reducing greenhouse gas emissions in the residential sector, fuel switching from coal and oil to natural gas for space heating is assessed as a potential policy option using Ireland as a case study. A range of building attributes and household characteristics are associated with fuel choice for household space heating, including distance to the gas network, which is inversely associated with the probability of gas connection. Distance decay effects are likely attributed to network connection fees, which are proportional to the connection distance. The impact of setting the marginal connection cost associated with distance to zero are simulated to examine emission and expenditure impacts across socio-economic groups. Up to 13% of unconnected properties are likely to respond to such an incentive, yielding a 3.9% reduction in greenhouse gas emissions and a 1.5% reduction in fuel expenditure relative to pre-policy levels of unconnected households within the study. Expenditure and emission impacts differ across socio-economic groups with the largest reductions expected to occur among semi-skilled/unskilled households, which are frequently among the least affluent households.

Suggested Citation

  • Curtis, John & Tovar, Miguel Angel & Grilli, Gianluca, 2020. "Access to and consumption of natural gas: Spatial and socio-demographic drivers," Energy Policy, Elsevier, vol. 143(C).
  • Handle: RePEc:eee:enepol:v:143:y:2020:i:c:s0301421520303505
    DOI: 10.1016/j.enpol.2020.111614
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421520303505
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Stéphane Couture & Serge Garcia & Arnaud Reynaud, 2009. "Household Energy Choices and Fuelwood Consumption: An Econometric Approach to the French Data," LERNA Working Papers 09.08.284, LERNA, University of Toulouse.
    2. Dergiades, Theologos & Tsoulfidis, Lefteris, 2008. "Estimating residential demand for electricity in the United States, 1965-2006," Energy Economics, Elsevier, vol. 30(5), pages 2722-2730, September.
    3. Runa Nesbakken, 2001. "Energy Consumption for Space Heating: A Discrete–Continuous Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 165-184, March.
    4. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "A meta-analysis on the price elasticity of energy demand," Energy Policy, Elsevier, vol. 102(C), pages 549-568.
    5. Meier, Helena & Rehdanz, Katrin, 2010. "Determinants of residential space heating expenditures in Great Britain," Energy Economics, Elsevier, vol. 32(5), pages 949-959, September.
    6. Garbacz, Christopher, 1984. "Residential demand for liquid petroleum gas," Economics Letters, Elsevier, vol. 15(3-4), pages 345-349.
    7. Callan, Tim & Lyons, Sean & Scott, Susan & Tol, Richard S.J. & Verde, Stefano, 2009. "The distributional implications of a carbon tax in Ireland," Energy Policy, Elsevier, vol. 37(2), pages 407-412, February.
    8. Gail R. Blattenberger & Lester D. Taylor & Robert K.Rennhack, 1983. "Natural Gas Availability and the Residential Demand for Energy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 23-45.
    9. Holtedahl, Pernille & Joutz, Frederick L., 2004. "Residential electricity demand in Taiwan," Energy Economics, Elsevier, vol. 26(2), pages 201-224, March.
    10. Filippini, Massimo & Hunt, Lester C., 2012. "US residential energy demand and energy efficiency: A stochastic demand frontier approach," Energy Economics, Elsevier, vol. 34(5), pages 1484-1491.
    11. Giuseppe De Luca & Valeria Perotti, 2011. "Estimation of ordered response models with sample selection," Stata Journal, StataCorp LP, vol. 11(2), pages 213-239, June.
    12. Massimo Filippini, 1999. "Swiss residential demand for electricity," Applied Economics Letters, Taylor & Francis Journals, vol. 6(8), pages 533-538.
    13. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, December.
    14. Mansur, Erin T. & Mendelsohn, Robert & Morrison, Wendy, 2008. "Climate change adaptation: A study of fuel choice and consumption in the US energy sector," Journal of Environmental Economics and Management, Elsevier, vol. 55(2), pages 175-193, March.
    15. Okajima, Shigeharu & Okajima, Hiroko, 2013. "Estimation of Japanese price elasticities of residential electricity demand, 1990–2007," Energy Economics, Elsevier, vol. 40(C), pages 433-440.
    16. Nesbakken, Runa, 2001. " Energy Consumption for Space Heating: A Discrete-Continuous Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(1), pages 165-184, March.
    17. Wadud, Zia & Noland, Robert B. & Graham, Daniel J., 2010. "A semiparametric model of household gasoline demand," Energy Economics, Elsevier, vol. 32(1), pages 93-101, January.
    18. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
    19. Damette, Olivier & Delacote, Philippe & Lo, Gaye Del, 2018. "Households energy consumption and transition toward cleaner energy sources," Energy Policy, Elsevier, vol. 113(C), pages 751-764.
    20. Curtis, John & Pentecost, Anne, 2015. "Household fuel expenditure and residential building energy efficiency ratings in Ireland," Energy Policy, Elsevier, vol. 76(C), pages 57-65.
    21. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    22. Tovar Reaños, Miguel A. & Wölfing, Nikolas M., 2018. "Household energy prices and inequality: Evidence from German microdata based on the EASI demand system," Energy Economics, Elsevier, vol. 70(C), pages 84-97.
    23. Michelsen, Carl Christian & Madlener, Reinhard, 2016. "Switching from fossil fuel to renewables in residential heating systems: An empirical study of homeowners' decisions in Germany," Energy Policy, Elsevier, vol. 89(C), pages 95-105.
    24. Franceschinis, Cristiano & Thiene, Mara & Scarpa, Riccardo & Rose, John & Moretto, Michele & Cavalli, Raffaele, 2017. "Adoption of renewable heating systems: An empirical test of the diffusion of innovation theory," Energy, Elsevier, vol. 125(C), pages 313-326.
    25. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    26. Karner, K. & Dißauer, C. & Enigl, M. & Strasser, C. & Schmid, E., 2017. "Environmental trade-offs between residential oil-fired and wood pellet heating systems: Forecast scenarios for Austria until 2030," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 868-879.
    27. Halvorsen, Robert, 1975. "Residential Demand for Electric Energy," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 12-18, February.
    28. Couture, Stéphane & Garcia, Serge & Reynaud, Arnaud, 2012. "Household energy choices and fuelwood consumption: An econometric approach using French data," Energy Economics, Elsevier, vol. 34(6), pages 1972-1981.
    29. Achtnicht, Martin & Madlener, Reinhard, 2014. "Factors influencing German house owners' preferences on energy retrofits," Energy Policy, Elsevier, vol. 68(C), pages 254-263.
    30. Frederiks, Elisha R. & Stenner, Karen & Hobman, Elizabeth V., 2015. "Household energy use: Applying behavioural economics to understand consumer decision-making and behaviour," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1385-1394.
    31. Decker, Thomas & Menrad, Klaus, 2015. "House owners' perceptions and factors influencing their choice of specific heating systems in Germany," Energy Policy, Elsevier, vol. 85(C), pages 150-161.
    32. Lauren Knapp & Jacob Ladenburg, 2015. "How Spatial Relationships Influence Economic Preferences for Wind Power—A Review," Energies, MDPI, Open Access Journal, vol. 8(6), pages 1-25, June.
    33. Curtis, John & McCoy, Daire & Aravena, Claudia, 2018. "Heating system upgrades: The role of knowledge, socio-demographics, building attributes and energy infrastructure," Energy Policy, Elsevier, vol. 120(C), pages 183-196.
    34. Arabatzis, G. & Malesios, Ch., 2011. "An econometric analysis of residential consumption of fuelwood in a mountainous prefecture of Northern Greece," Energy Policy, Elsevier, vol. 39(12), pages 8088-8097.
    35. Haas, Reinhard & Schipper, Lee, 1998. "Residential energy demand in OECD-countries and the role of irreversible efficiency improvements," Energy Economics, Elsevier, vol. 20(4), pages 421-442, September.
    36. Delmas, Magali A. & Fischlein, Miriam & Asensio, Omar I., 2013. "Information strategies and energy conservation behavior: A meta-analysis of experimental studies from 1975 to 2012," Energy Policy, Elsevier, vol. 61(C), pages 729-739.
    37. Pindyck, Robert S., 1980. "International comparisons of the residential demand for energy," European Economic Review, Elsevier, vol. 13(1), pages 1-24, January.
    38. McCoy, Daire & Curtis, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," Resource and Energy Economics, Elsevier, vol. 52(C), pages 64-86.
    39. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    40. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-738, September.
    41. Hunt Allcott & Todd Rogers, 2014. "The Short-Run and Long-Run Effects of Behavioral Interventions: Experimental Evidence from Energy Conservation," American Economic Review, American Economic Association, vol. 104(10), pages 3003-3037, October.
    42. Mills, Bradford & Schleich, Joachim, 2012. "Residential energy-efficient technology adoption, energy conservation, knowledge, and attitudes: An analysis of European countries," Energy Policy, Elsevier, vol. 49(C), pages 616-628.
    43. Richard J. Cebula, 2012. "US residential electricity consumption: the effect of states' pursuit of energy efficiency policies," Applied Economics Letters, Taylor & Francis Journals, vol. 19(15), pages 1499-1503, October.
    44. Liang, Qiao-Mei & Wei, Yi-Ming, 2012. "Distributional impacts of taxing carbon in China: Results from the CEEPA model," Applied Energy, Elsevier, vol. 92(C), pages 545-551.
    45. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    46. McCoy, Daire & Curtice, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," LSE Research Online Documents on Economics 86625, London School of Economics and Political Science, LSE Library.
    47. Connolly, D. & Lund, H. & Mathiesen, B.V. & Werner, S. & Möller, B. & Persson, U. & Boermans, T. & Trier, D. & Østergaard, P.A. & Nielsen, S., 2014. "Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system," Energy Policy, Elsevier, vol. 65(C), pages 475-489.
    48. Florens Flues & Alastair Thomas, 2015. "The distributional effects of energy taxes," OECD Taxation Working Papers 23, OECD Publishing.
    49. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    50. Braun, Frauke G., 2010. "Determinants of households' space heating type: A discrete choice analysis for German households," Energy Policy, Elsevier, vol. 38(10), pages 5493-5503, October.
    51. Harold, Jason & Lyons, Seán & Cullinan, John, 2015. "The determinants of residential gas demand in Ireland," Energy Economics, Elsevier, vol. 51(C), pages 475-483.
    52. Rogan, Fionn & Cahill, Caiman J. & Ó Gallachóir, Brian P., 2012. "Decomposition analysis of gas consumption in the residential sector in Ireland," Energy Policy, Elsevier, vol. 42(C), pages 19-36.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:143:y:2020:i:c:s0301421520303505. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: http://www.elsevier.com/locate/enpol .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.