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The impact of population ageing on energy use: Evidence from Italy

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  • Garau, Giorgio
  • Lecca, Patrizio
  • Mandras, Giovanni

Abstract

In this study we evaluate the impact of demographic change on energy use. The results are obtained from calibrated overlapping generations general equilibrium model for Italy. Contrary to studies based on partial equilibrium regression models, or fixed price models that are unable to account for supply side effects, we found that a pronounced ageing population leads to a reduction in energy use, although in principle, the increase in the share of old people produces a shift in consumption towards a more energy intensive mix of goods and services.

Suggested Citation

  • Garau, Giorgio & Lecca, Patrizio & Mandras, Giovanni, 2013. "The impact of population ageing on energy use: Evidence from Italy," Economic Modelling, Elsevier, vol. 35(C), pages 970-980.
    • Handle: RePEc:eee:ecmode:v:35:y:2013:i:c:p:970-980
    DOI: 10.1016/j.econmod.2013.09.006
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    6. Ha-Hyun Jo & Minwoo Jang & Jaehyeok Kim, 2020. "How Population Age Distribution Affects Future Electricity Demand in Korea: Applying Population Polynomial Function," Energies, MDPI, vol. 13(20), pages 1-17, October.
    7. Bahman Huseynli, 2023. "Effect of Exports of Goods and Services and Energy Consumption in Italy`s Service Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 254-261, May.
    8. Day, Rosie, 2015. "Low carbon thermal technologies in an ageing society – What are the issues?," Energy Policy, Elsevier, vol. 84(C), pages 250-256.
    9. Loi, Tian Sheng Allan & Loo, Soh Leng, 2016. "The impact of Singapore’s residential electricity conservation efforts and the way forward. Insights from the bounds testing approach," Energy Policy, Elsevier, vol. 98(C), pages 735-743.
    10. Jaehyeok Kim & Minwoo Jang & Donghyun Shin, 2019. "Examining the Role of Population Age Structure upon Residential Electricity Demand: A Case from Korea," Sustainability, MDPI, vol. 11(14), pages 1-19, July.
    11. Martin Stepanek, 2022. "Sectoral Impacts of International Labour Migration and Population Ageing in the Czech Republic," Computational Economics, Springer;Society for Computational Economics, vol. 60(2), pages 375-400, August.
    12. Schröder, Carsten & Rehdanz, Katrin & Narita, Daiju & Okubo, Toshihiro, 2015. "The decline in average family size and its implications for the average benefits of within‐household sharing," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 67(3), pages 760-780.
    13. Nakhli, Mohamed Sahbi & Shahbaz, Muhammad & Ben Jebli, Mehdi & Wang, Shizhen, 2022. "Nexus between economic policy uncertainty, renewable & non-renewable energy and carbon emissions: Contextual evidence in carbon neutrality dream of USA," Renewable Energy, Elsevier, vol. 185(C), pages 75-85.
    14. Ping Wang & Zhibao Wang, 2024. "New Interpretation of Human–Land Relations: Evidence from the Impact of Population Aging on Resource Utilization Efficiency in the Yellow River Basin," Sustainability, MDPI, vol. 16(15), pages 1-16, July.
    15. Houjian Li & Xiaolei Zhou & Mengqian Tang & Lili Guo, 2022. "Impact of Population Aging and Renewable Energy Consumption on Agricultural Green Total Factor Productivity in Rural China: Evidence from Panel VAR Approach," Agriculture, MDPI, vol. 12(5), pages 1-19, May.
    16. Wang, Zhibao & Wei, Lijie & Zhang, Xiaoping & Qi, Guangzhi, 2023. "Impact of demographic age structure on energy consumption structure: Evidence from population aging in mainland China," Energy, Elsevier, vol. 273(C).
    17. Nabila Abid & Jianzu Wu & Fayyaz Ahmad & Muhammad Umar Draz & Abbas Ali Chandio & Hui Xu, 2020. "Incorporating Environmental Pollution and Human Development in the Energy-Growth Nexus: A Novel Long Run Investigation for Pakistan," IJERPH, MDPI, vol. 17(14), pages 1-22, July.
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    More about this item

    Keywords

    Population ageing; Energy; Overlapping generations model;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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