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Energy Consumption in the French Residential Sector: How Much do Individual Preferences Matter?

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  • Salomé Bakaloglou
  • Dorothée Charlier

Abstract

The aim of this research is to understand the impact of preference heterogeneity in explaining energy consumption in French homes. Using a discrete-continuous model and the conditional mixed-process estimator (CMP) enable us to address two potential endogeneities in residential energy consumption: energy prices and the choice of home energy characteristics. As a key contribution, we provide evidence that a preference for comfort over saving energy does have significant direct and indirect impacts on energy consumption (through the choice of dwelling), particularly for high-income households. Preferring comfort over economy or one additional degree of heating implies an average energy overconsumption of 10% and 7.8% respectively, up to 18% for high-income households. Our results strengthen the belief that household heterogeneity is an important factor in explaining energy consumption and could have meaningful implications for the design of public policy tools aimed at reducing energy consumption in the residential sector.

Suggested Citation

  • Salomé Bakaloglou & Dorothée Charlier, 2019. "Energy Consumption in the French Residential Sector: How Much do Individual Preferences Matter?," The Energy Journal, , vol. 40(3), pages 77-100, May.
    • Handle: RePEc:sae:enejou:v:40:y:2019:i:3:p:77-100
    DOI: 10.5547/01956574.40.3.sbak
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    References listed on IDEAS

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    1. Erdal Aydin & Nils Kok & Dirk Brounen, 2017. "Energy efficiency and household behavior: the rebound effect in the residential sector," RAND Journal of Economics, RAND Corporation, vol. 48(3), pages 749-782, August.
    2. Valérie Mignon & Emmanuel Hache & Déborah Leboullenger, 2017. "Beyond average energy consumption in the French residential market: A household classification approach," Post-Print hal-01549810, HAL.
    3. Cayla, Jean-Michel & Maizi, Nadia & Marchand, Christophe, 2011. "The role of income in energy consumption behaviour: Evidence from French households data," Energy Policy, Elsevier, vol. 39(12), pages 7874-7883.
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