IDEAS home Printed from
   My bibliography  Save this paper

Energy Demand for Heating in Spain: An Empirical Analysis with Policy Purposes


  • Xavier Labandeira

    () (Rede (Universidade de Vigo) and Economics for Energy)

  • José M. Labeaga

    () (Instituto de Estudios Fiscales and UNED)

  • Xiral López-Otero

    () (Rede (Universidade de Vigo) and Economics for Energy)


Household energy consumption, mostly due to residential heating, is a large component of energy demand in developed countries and thus a target for public policies aimed at reducing negative environmental effects and energy dependence. This paper uses detailed Spanish household micro data to model the related decisions on the type of heating energy source and on the amount of energy used for heating. This way, the article provides accurate estimates that may be used to assess the short and long term effects of public policies in this field. In particular, the relative prices of the three main energy sources for heating influence the discrete decision on the type of energy source in a sort of medium/long term effect. Moreover, the short-term demand reactions to energy price changes are found to be limited but variable across the different energy sources for heating in Spain.

Suggested Citation

  • Xavier Labandeira & José M. Labeaga & Xiral López-Otero, 2011. "Energy Demand for Heating in Spain: An Empirical Analysis with Policy Purposes," Working Papers 06-2011, Economics for Energy.
  • Handle: RePEc:efe:wpaper:06-2011

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-362, March.
    2. Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2012. "Estimation of elasticity price of electricity with incomplete information," Energy Economics, Elsevier, vol. 34(3), pages 627-633.
    3. Pedro Linares & Xavier Labandeira, 2010. "Energy Efficiency: Economics And Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 573-592, July.
    4. Jean-Thomas Bernard & Denis Bolduc & Donald Belanger, 1996. "Quebec Residential Electricity Demand: A Microeconometric Approach," Canadian Journal of Economics, Canadian Economics Association, vol. 29(1), pages 92-113, February.
    5. Bhat, Chandra R. & Sen, Sudeshna, 2006. "Household vehicle type holdings and usage: an application of the multiple discrete-continuous extreme value (MDCEV) model," Transportation Research Part B: Methodological, Elsevier, vol. 40(1), pages 35-53, January.
    6. 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.
    7. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    8. Baker, Paul & Blundell, Richard, 1991. "The Microeconometric Approach to Modelling Energy Demand: Some Results for UK Households," Oxford Review of Economic Policy, Oxford University Press, vol. 7(2), pages 54-76, Summer.
    9. Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.
    10. Vaage, Kjell, 2000. "Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand," Energy Economics, Elsevier, vol. 22(6), pages 649-666, December.
    11. Asadoorian, Malcolm O. & Eckaus, Richard S. & Schlosser, C. Adam, 2008. "Modeling climate feedbacks to electricity demand: The case of China," Energy Economics, Elsevier, vol. 30(4), pages 1577-1602, July.
    12. West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
    13. Newell, Richard G. & Pizer, William A., 2008. "Carbon mitigation costs for the commercial building sector: Discrete-continuous choice analysis of multifuel energy demand," Resource and Energy Economics, Elsevier, vol. 30(4), pages 527-539, December.
    14. Narayan, Paresh Kumar & Smyth, Russell, 2005. "The residential demand for electricity in Australia: an application of the bounds testing approach to cointegration," Energy Policy, Elsevier, vol. 33(4), pages 467-474, March.
    15. Jerry A. Hausman, 1979. "Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 33-54, Spring.
    16. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    17. Halvorsen, Bente & Larsen, Bodil M., 2001. "The flexibility of household electricity demand over time," Resource and Energy Economics, Elsevier, vol. 23(1), pages 1-18, January.
    18. Bernstein, Ronald & Madlener, Reinhard, 2011. "Responsiveness of Residential Electricity Demand in OECD Countries: A Panel Cointegation and Causality Analysis," FCN Working Papers 8/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    19. Christopher Garbacz, 1984. "Residential Electricity Demand: A Suggested Appliance Stock Equation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 151-154.
    20. E. Raphael Branch, 1993. "Short Run Income Elasticity of Demand for Residential Electricity Using Consumer Expenditure Survey Data," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 111-122.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Yearwood Travezan, Jessica & Harmsen, Robert & van Toledo, Gideon, 2013. "Policy analysis for energy efficiency in the built environment in Spain," Energy Policy, Elsevier, vol. 61(C), pages 317-326.
    2. Friesenhan, Christian & Agirre, Ion & Eltrop, Ludger & Arias, Pedro L., 2017. "Streamlined life cycle analysis for assessing energy and exergy performance as well as impact on the climate for landfill gas utilization technologies," Applied Energy, Elsevier, vol. 185(P1), pages 805-813.

    More about this item


    Environment; energy; security; discrete; continuous; choice; taxes; prices;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:efe:wpaper:06-2011. 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: (Pablo Pintos). General contact details of provider: .

    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.