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The Role of Risk and Trust Attitudes in Explaining Residential Energy Demand: Evidence from the United Kingdom

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  • Benjamin Volland

Abstract

Recent research into the determinants of household energy consumption has aimed to incorporate findings from economics, sociology and psychology in order to obtain a more comprehensive understanding of the factors determining energy demand. The current paper contributes to this nascent stream of literature by studying the relationship between risk attitudes, trust propensity and energy consumption at the household level. Drawing on the British Household Panel Survey, a well-known data set in the context of energy studies, I show that trust is negatively correlated with household energy demand, while higher risk tolerance leads to increases in residential energy use. Potential explanations for these findings are investigated, suggesting that risk preferences may be related with overall appliance stock and the size of the rebound effect.

Suggested Citation

  • Benjamin Volland, 2016. "The Role of Risk and Trust Attitudes in Explaining Residential Energy Demand: Evidence from the United Kingdom," IRENE Working Papers 16-02, IRENE Institute of Economic Research.
  • Handle: RePEc:irn:wpaper:16-02
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    Cited by:

    1. repec:eee:enepol:v:128:y:2019:i:c:p:136-149 is not listed on IDEAS
    2. Stuart McIntyre, 2018. "Exploring households' responsiveness to energy price changes using microdata," Working Papers 1806, University of Strathclyde Business School, Department of Economics.
    3. repec:seb:journl:v:16:y:2018:i:2:p:189-207 is not listed on IDEAS
    4. Stefano Carattini & Simon Levin & Alessandro Tavoni, 2019. "Cooperation in the Climate Commons," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 13(2), pages 227-247.
    5. repec:eee:enepol:v:118:y:2018:i:c:p:160-168 is not listed on IDEAS
    6. Ivan Tilov & Benjamin Volland & Mehdi Farsi, 2017. "Interactions in Swiss Households' Energy Demand: A Holistic Approach," IRENE Working Papers 17-11, IRENE Institute of Economic Research.
    7. Benjamin Volland, 2018. "Après nous le déluge? Perceived distance of climate change impacts and pro-environmental behaviour," IRENE Working Papers 18-05, IRENE Institute of Economic Research.
    8. repec:eee:ecolec:v:148:y:2018:i:c:p:54-65 is not listed on IDEAS
    9. repec:eee:jeeman:v:94:y:2019:i:c:p:254-273 is not listed on IDEAS

    More about this item

    Keywords

    Risk attitudes; Trust; Energy expenditures; BHPS; UK Households.;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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