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Micro evidence on household energy consumption

Panel: Panel 2: Dynamics of Consumption

Author:
Søren Leth-Petersen, AKF

Abstract

In the paper is presented a micro econometric model of household electricity and natural gas demand for a cross section of 2,885 households observed in 1996. Estimates suggest that electricity consumption depends on the number of children, and depends linearly on income. The consumption of natural gas is found to vary with age, and to depend linearly on income, and on the technical characteristics of the dwelling. Particularly, it is found that the consumption of energy for space heating depends heavily on the building codes in force at the time of the construction of the house. Finally, a test of the dependence of gas consumption on the consumption of electricity and vice versa is carried out. The test indicates that demand for electricity is separable from demand for natural gas.

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