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The demand for energy of Italian households

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  • Ivan Faiella

    (Bank of Italy)

Abstract

This paper studies the impact of demographic shifts, energy prices and climate factors on Italian households� energy budget. The pattern of energy expenditure of Italian households is studied using the Italian Household Budget Survey. The expenditure for heating, private transport and electricity are jointly modelled and the relevant parameters are simulated under different scenarios. According to this exercise, the ageing of the Italian population - coupled with the increase in energy prices and surface temperature - could reduce the share of energy-related expenditure by about 2 percentage points in the next few decades and increase its polarization. Energy policies should take into consideration households� characteristics and behaviour, and in turn the impact of this heterogeneity on the demand for energy.

Suggested Citation

  • Ivan Faiella, 2011. "The demand for energy of Italian households," Temi di discussione (Economic working papers) 822, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:wptemi:td_822_11
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    References listed on IDEAS

    as
    1. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, "undated". "Microsimulating the Effects of Household Energy Price Changes in Spain," Studies on the Spanish Economy 196, FEDEA.
    2. Kurt KRATENA & Ina MEYER & Michael WUEGER, 2008. "Modelling the Energy Demand of Households in a Combined Top Down/Bottom Up Approach," EcoMod2008 23800069, EcoMod.
    3. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    4. Jean-Marc Burniaux & Jean Château & Romain Duval & Stéphanie Jamet, 2008. "The Economics of Climate Change Mitigation: Policies and Options for the Future," OECD Economics Department Working Papers 658, OECD Publishing.
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    Cited by:

    1. Ivan Faiella & Federico Cingano, 2015. "La tassazione verde in Italia: l?analisi di una carbon tax sui trasporti," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2015(2), pages 45-90.
    2. Ivan Faiella & Luciano Lavecchia, 2021. "Households' energy demand and the effects of carbon pricing in Italy," Questioni di Economia e Finanza (Occasional Papers) 614, Bank of Italy, Economic Research and International Relations Area.
    3. Ivan Faiella & Luciano Lavecchia, 2015. "Energy Poverty in Italy," Politica economica, Società editrice il Mulino, issue 1, pages 27-76.
    4. Bartocci, Anna & Pisani, Massimiliano, 2013. "“Green” fuel tax on private transportation services and subsidies to electric energy. A model-based assessment for the main European countries," Energy Economics, Elsevier, vol. 40(S1), pages 32-57.
    5. Federico Cingano & Ivan Faiella, 2013. "Green taxation in Italy: an assessment of a carbon tax on transport," Questioni di Economia e Finanza (Occasional Papers) 206, Bank of Italy, Economic Research and International Relations Area.
    6. Garau, Giorgio & Lecca, Patrizio & Mandras, Giovanni, 2013. "The impact of population ageing on energy use: Evidence from Italy," Economic Modelling, Elsevier, vol. 35(C), pages 970-980.

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    More about this item

    Keywords

    household energy demand; demographics; climate change;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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