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Household formation and residential energy demand: Evidence from Japan

Listed author(s):
  • Schröder, Carsten
  • Rehdanz, Katrin
  • Narita, Daiju
  • Okubo, Toshihiro

We use a large household panel for Japan (Keio Household Panel Survey) to estimate household-size economies in energy consumption. The household-size economies we obtain are significant and sizable: the per-capita energy-related spending of a two-adult household is only about two-thirds of the expenditure of a one-adult household. We use the estimates of household-size economies to explore how the demographic trend toward smaller-sized household units changes energy demand in 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 economies increased energy demand in the household sector by about four percent.

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File URL: https://www.econstor.eu/bitstream/10419/73677/1/745194672.pdf
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Paper provided by Kiel Institute for the World Economy (IfW) in its series Kiel Working Papers with number 1836.

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Date of creation: 2013
Handle: RePEc:zbw:ifwkwp:1836
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  1. 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.
  2. 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.
  3. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
  4. 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.
  5. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
  6. Axel Börsch-Supan, 2003. "Labor Market Effects of Population Aging," LABOUR, CEIS, vol. 17(SpecialIs), pages 5-44, 08.
  7. Pestieau, Pierre, 1989. "The Demographics of Inequality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 2(1), pages 3-24.
  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. 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.
  10. 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.
  11. 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.
  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. 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.
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