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

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  • SÏ•ren 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

  • SÏ•ren Leth-Petersen, 2007. "Habit Formation and Consumption of Energy for Heating: Evidence from a Panel of Danish Households," The Energy Journal, , vol. 28(2), pages 35-54, April.
    • Handle: RePEc:sae:enejou:v:28:y:2007:i:2:p:35-54
    DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No2-2
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