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Price Sensitivity of Residential Energy Consumption in Norway

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    The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993, 1994 and 1995. The parameter estimates are stable within a 95 per cent confidence interval. However, the estimated impact of the energy price variable on energy consumption is considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households.

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    File URL: http://www.ssb.no/a/publikasjoner/pdf/DP/dp232.pdf
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    Paper provided by Statistics Norway, Research Department in its series Discussion Papers with number 232.

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    Date of creation: Sep 1998
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    Handle: RePEc:ssb:dispap:232
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    1. Yamasaki, Eiji & Tominaga, Norio, 1997. "Evolution of an aging society and effect on residential energy demand," Energy Policy, Elsevier, vol. 25(11), pages 903-912, September.
    2. 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.
    3. Henley, Andrew & Peirson, John, 1998. "Residential energy demand and the interaction of price and temperature: British experimental evidence," Energy Economics, Elsevier, vol. 20(2), pages 157-171, April.
    4. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
    5. Garbacz, Christopher, 1983. "A model of residential demand for electricity using a national household sample," Energy Economics, Elsevier, vol. 5(2), pages 124-128, April.
    6. Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-38, September.
    7. M.F. Morss & J.L. Small, 1989. "Deriving Electricity Demand Elasticities from a Simulation Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-76.
    8. Runa Nesbakken, 1998. "Residential Energy Consumption for Space Heating in Norwegian Households A Discrete-Continuous Choice Approach," Discussion Papers 231, Statistics Norway, Research Department.
    9. 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.
    10. 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.
    11. Rudolf K.-H. Dennerlein, 1987. "Residential Demand for Electrical Appliances and Electricity in the Federal Republic of Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 69-86.
    12. Poyer, David A. & Henderson, Lenneal & Teotia, Arvind P. S., 1997. "Residential energy consumption across different population groups: comparative analysis for Latino and non-Latino households in USA," Energy Economics, Elsevier, vol. 19(4), pages 445-463, October.
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