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Estimating a Consumer Demand System of Energy, Mobility and Leisure: A Microdata Approach for Germany

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  • Martin Beznoska

Abstract

This paper investigates empirically the consumer demand of environmentally relevant goods for Germany, as well as their relationship to the demand for leisure. Higher prices for energy goods like gas, electricity or fuel oil due to higher indirecttaxation amongst others may have serious welfare and distributional effects for households. Also, there is very little evidence of the labor market implications of environmental taxation, as there is e.g. no quantification of labor supply effects, respectively leisure demand effects for Germany. Using a demand system to estimate the price, cross-price and income effects of the goods mobility, electricity, heating and leisure from microdata, there will also be accounted for the extensive demand for leisure, which is the not negligible labor market participation. Additionally, the extensive and intensive leisure demand is combined to total leisure demand elasticities, which can then be used for welfare and behavior analyses.

Suggested Citation

  • Martin Beznoska, 2014. "Estimating a Consumer Demand System of Energy, Mobility and Leisure: A Microdata Approach for Germany," Discussion Papers of DIW Berlin 1374, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1374
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    1. Nikodinoska, Dragana & Schröder, Carsten, 2016. "On the emissions–inequality and emissions–welfare trade-offs in energy taxation: Evidence on the German car fuels tax," Resource and Energy Economics, Elsevier, vol. 44(C), pages 206-233.
    2. Edenhofer, Ottmar & Flachsland, Christian & Kalkuhl, Matthias & Knopf, Brigitte & Pahle, Michael, 2019. "Optionen für eine CO2-Preisreform," Working Papers 04/2019, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
    3. Chen, Qiu & Huang, Jikun & Mirzabaev, Alisher, 2022. "Does fuel price subsidy work? Household energy transition under imperfect labor market in rural China," Energy Economics, Elsevier, vol. 107(C).
    4. Prasanna, Ashreeta & Mahmoodi, Jasmin & Brosch, Tobias & Patel, Martin K., 2018. "Recent experiences with tariffs for saving electricity in households," Energy Policy, Elsevier, vol. 115(C), pages 514-522.
    5. Schulte, Isabella & Heindl, Peter, 2017. "Price and income elasticities of residential energy demand in Germany," Energy Policy, Elsevier, vol. 102(C), pages 512-528.

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    More about this item

    Keywords

    Consumer demand system; almost ideal demand system; environmental taxation; demand for leisure;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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