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Price Sensitivity of Residential Energy Consumption in Norway

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The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993, 1994 and 1995. The parameter estimates are stable within a 95 per cent confidence interval. However, the estimated impact of the energy price variable on energy consumption is considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households.

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  • Runa Nesbakken, 1998. "Price Sensitivity of Residential Energy Consumption in Norway," Discussion Papers 232, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:232
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    Cited by:

    1. Bente Halvorsen & Bodil M. Larsen, 1999. "Changes in the Pattern of Household Electricity Demand over Time," Discussion Papers 255, Statistics Norway, Research Department.
    2. Shumin Jiang & Jingtao Guo & Chen Yang & Zhanwen Ding & Lixin Tian, 2017. "Analysis of the Relative Price in China’s Energy Market for Reducing the Emissions from Consumption," Energies, MDPI, vol. 10(5), pages 1-13, May.

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    More about this item

    Keywords

    Household energy consumption; space heating system; discrete-continuous choice; parameter stability.;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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