The effect of conservation on residential electricity consumption: evidence from Kuwait

Based on data from a household survey completed in 2016, this paper estimated a model for residential electricity consumption in Kuwait. The main objective of estimating the model was to examine the impact of curtailment and efficiency energy conservation measures on household electricity consumption. Given Kuwait’s demographic composition and variations in electricity consumption across months, the model was estimated for two population groups (nationals and expatriates) and three periods (annual, summer months, and winter months). Prior to estimating the model, tests were conducted to determine if the observed differences in consumption across the population groups were sufficiently different to warrant separate treatment of groups. The survey data revealed that despite electricity consumption being heavily subsidized, households made efforts to conserve electricity by investing in efficient technologies as well as changing habits and practices. While the curtailment measures reported to be adopted by households were found to lower electricity consumption of the national households, the efficiency measures were found to impact electricity consumption of expatriate households. Awareness of conservation campaigns and conservation issues were found to lower electricity consumption, particularly in the case of expatriate households.