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Determinants of Residential end-use electricity demand: Evidence from Sweden
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE). Beijer Institute of Ecological Economics, The Royal Academy of Sciences, Stockholm. (Centre for Environmental and Resource Economics (CERE))
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics. (Centre for Environmental and Resource Economics (CERE); Undustrial Doctoral School, Umeå University)
Department of Forest Economics, SLU, Umeå. (Centre for Environmental and Resource Economics (CERE))
(English)Manuscript (preprint) (Other academic)
Abstract [en]

Using a household appliance metering data set from the Swedish Energy Agency, this paper focuses on understanding the determinants of end-use electricity demand for Sweden. The focal point of the analysis is the estimation of end-use-specific income elasticity of electricity demand, for the first time for Sweden. A seemingly unrelated regression framework is used for understanding the determinants of end-use demand, with the end-uses being heating, kitchen, lighting, and residual. The main results of the analysis are: high aggregate elasticity (above 0.6), and very high income elasticity of electric heating (above 0.8). Other size-related variables (size of home, number of people) do not appear to have significant explanatory power. Overall, our analysis indicates that income is a key factor determining the demand for electricity, and to a much larger extent than usually considered

Keyword [en]
Direct Metering, Residential Electricity Demand, income elasticity
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-104613OAI: oai:DiVA.org:umu-104613DiVA: diva2:820426
Available from: 2015-06-12 Created: 2015-06-12 Last updated: 2015-08-10Bibliographically approved

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