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A life-cycle theory analysis of French household electricity demand

Author

Listed:
  • Fateh Belaïd

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Rault

    (LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne)

  • Camille Massié

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - ULCO - Université du Littoral Côte d'Opale - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper develops a pseudo-panel approach to examine household electricity demand behavior through the household life cycle and its response to income variations to help strengthen the energy policy-making process. Our empirical methodology is based on three rich independent microdata surveys (the National Housing Surveys), which are representative of the French housing sector. The resulted sample covers the 2006-2016 period. Using within estimations, this paper finds striking evidence that the income elasticity of French residential electricity demand is 0.22, averaged over our four cohorts of generations. In light of other works, our estimate stands in the lower range. The empirical results also show that residential electricity consumption follows an inverted U-shaped distribution as a function of the age of the household's head. Most notably, it appears that households at the mid-point of their life cycle are relatively the largest consumers of electricity. This outcome has important implications for policy-making. Any public policy aimed at reducing household energy consumption should consider this differentiation in consumption according to the position of households over the life cycle, and therefore target as priority households at the highest level of consumption.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Fateh Belaïd & Christophe Rault & Camille Massié, 2022. "A life-cycle theory analysis of French household electricity demand," Post-Print hal-04143947, HAL.
    • Handle: RePEc:hal:journl:hal-04143947
    DOI: 10.1007/s00191-021-00730-x
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    Cited by:

    1. Omri, Anis & Omri, Henda & Slimani, Sana & Belaid, Fateh, 2022. "Environmental degradation and life satisfaction: Do governance and renewable energy matter?," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    2. Belaïd, Fateh & Flambard, Véronique, 2023. "Boosting buildings energy efficiency: The impact of social norms and motivational feedback," Journal of Economic Behavior & Organization, Elsevier, vol. 215(C), pages 26-39.
    3. Aslam, Misbah & Ahmad, Eatzaz, 2023. "Untangling electricity demand elasticities: Insights from heterogeneous household groups in Pakistan," Energy, Elsevier, vol. 282(C).
    4. Belaïd, Fateh & Massié, Camille, 2023. "Driving forward a low-carbon built environment: The impact of energy context and environmental concerns on building renovation," Energy Economics, Elsevier, vol. 124(C).

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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