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Energy Consumption in the French Residential Sector: How Much do Individual Preferences Matter?

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  • Salomé Bakaloglou
  • Dorothée Charlier

Abstract

The aim of this research is to understand the impact of preference heterogeneity in explaining energy consumption in French homes. Using a discrete-continuous model and the conditional mixed-process estimator (CMP) enable us to address two potential endogeneities in residential energy consumption: energy prices and the choice of home energy characteristics. As a key contribution, we provide evidence that a preference for comfort over saving energy does have significant direct and indirect impacts on energy consumption (through the choice of dwelling), particularly for high-income households. Preferring comfort over economy or one additional degree of heating implies an average energy overconsumption of 10% and 7.8% respectively, up to 18% for high-income households. Our results strengthen the belief that household heterogeneity is an important factor in explaining energy consumption and could have meaningful implications for the design of public policy tools aimed at reducing energy consumption in the residential sector.

Suggested Citation

  • Salomé Bakaloglou & Dorothée Charlier, 2019. "Energy Consumption in the French Residential Sector: How Much do Individual Preferences Matter?," The Energy Journal, , vol. 40(3), pages 77-100, May.
    • Handle: RePEc:sae:enejou:v:40:y:2019:i:3:p:77-100
    DOI: 10.5547/01956574.40.3.sbak
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    References listed on IDEAS

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    1. Carroll, James & Lyons, Seán & Denny, Eleanor, 2014. "Reducing household electricity demand through smart metering: The role of improved information about energy saving," Energy Economics, Elsevier, vol. 45(C), pages 234-243.
    2. Anna Risch & Claire Salmon, 2017. "What matters in residential energy consumption: evidence from France," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 40(1/2), pages 79-116.
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    Cited by:

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    2. Franziska Klein & Jeroen van den Bergh & Joël Foramitti & Théo Konc, 2025. "Agentizing a General Equilibrium Model of Environmental Tax Reform," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(2), pages 459-502, February.
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    5. Hasanov, Tayyar & Charlier, Dorothée, 2025. "Classifying energy behaviors to optimize sustainability: Insights from French residential heating practices," Energy Economics, Elsevier, vol. 152(C).

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