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Household formation and residential energy demand: Evidence from Japan

Listed author(s):
  • Carsten Schroder

    (University of Kiel, Department of Economics, Germany)

  • Katrin Rehdanz

    (Kiel Institute for the World Economy, Germany / University of Kiel, Department of Economics, Germany)

  • Daiju Narita

    (Kiel Institute for the World Economy, Germany)

  • Toshihiro Okubo

    (Keio University, Japan)

We use a large household panel for Japan (Keio Household Panel Survey, KHPS), to estimate household-size economies in energy consumption. Household-size economies we obtain are significant and sizable: the per-capita energy-related spending of a two-adult household is only about two thirdsof a one-adult household's spending. We use the estimates ofhousehold-size economies to explore how the demographic trend towards smaller-sized household units changes the energy demand of the Japanese household sector. Between 2005 and 2010, for example, average household size in Japan decreased by about five percent. The resulting economy-wide loss in household-size economiesincreased the energy demandof the household sectorby about four percent.

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File URL: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/pdf/dp/DP2012-047.pdf
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Paper provided by Keio/Kyoto Joint Global COE Program in its series Keio/Kyoto Joint Global COE Discussion Paper Series with number 2012-047.

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Length: 37 pages
Date of creation: Mar 2013
Handle: RePEc:kei:dpaper:2012-047
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Web page: http://ies.keio.ac.jp/old_project/old/gcoe-econbus/
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  1. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, vol. 56(5), pages 931-945.
  2. Higgins, Matthew, 1998. "Demography, National Savings, and International Capital Flows," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 343-369, May.
  3. Axel Börsch-Supan, 2003. "Labor Market Effects of Population Aging," LABOUR, CEIS, vol. 17(SpecialIs), pages 5-44, 08.
  4. PESTIEAU, Pierre, "undated". "The demographics of inequality," CORE Discussion Papers RP 833, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  5. Assaf Razin & Efraim Sadka & Phillip Swagel, 2002. "The Aging Population and the Size of the Welfare State," Journal of Political Economy, University of Chicago Press, vol. 110(4), pages 900-918, August.
  6. Phillip L Swagel & Efraim Sadka & Assaf Razin, 2002. "The Aging of the Population and the Size of the Welfare State," IMF Working Papers 02/68, International Monetary Fund.
  7. Katrin Rehdanz, 2005. "Determinants Of Residential Space Heating Expenditures In Germany," Working Papers FNU-66, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2005.
  8. Gruber, Jonathan & Wise, David, 1998. "Social Security and Retirement: An International Comparison," American Economic Review, American Economic Association, vol. 88(2), pages 158-163, May.
  9. Ironmonger, D S & Aitken, C K & Erbas, B, 1995. "Economies of scale in energy use in adult-only households," Energy Economics, Elsevier, vol. 17(4), pages 301-310, October.
  10. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
  11. Disney, Richard, 2007. "Population ageing and the size of the welfare state: Is there a puzzle to explain?," European Journal of Political Economy, Elsevier, vol. 23(2), pages 542-553, June.
  12. James M. Poterba, 2001. "Demographic Structure And Asset Returns," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 565-584, November.
  13. Vringer, Kees & Blok, Kornelis, 1995. "The direct and indirect energy requirements of households in the Netherlands," Energy Policy, Elsevier, vol. 23(10), pages 893-910, October.
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