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

Faiella, Ivan, The Demand for Energy of Italian Households (September 23, 2011). Bank of Italy Temi di Discussione(Working Paper) No. 822, Available at SSRN: https://ssrn.com/abstract=1960982 or http://dx.doi.org/10.2139/ssrn.1960982

Ivan Faiella (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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