The Demand for Energy of Italian Households
43 Pages Posted: 17 Nov 2011
Date Written: September 23, 2011
Abstract
This paper studies the impact of demographic shifts, energy prices and climate factors on Italian households’ energy budget. The pattern of energy expenditure of Italian households is studied using the Italian Household Budget Survey. The expenditure for heating, private transport and electricity are jointly modeled and the relevant parameters are simulated under different scenarios. According to this exercise, the aging of the Italian population - coupled with the increase in energy prices and surface temperature - could reduce the share of energy-related expenditure by about 2 percentage points in the next few decades and increase its polarization. Energy policies should take into consideration households’ characteristics and behavior, and in turn the impact of this heterogeneity on the demand for energy.
Keywords: household energy demand, demographics, climate change
JEL Classification: D11, J11, Q41, Q47, Q54
Suggested Citation: Suggested Citation