Analysis on the Changes of Household Electricity Consumption over the Past Three Decades

Abstract

This study uses the Blinder-Oaxaca decomposition to investigate what are the main reasons that contribute to the changes of household electricity consumption. The household data in Taiwan over the period 1985-2015 are used. The empirical results indicate that the changes of household electricity consumption are driven by different factors across these three decades. The increase in household electricity consumption is mainly attributed to the changes in the coefficients effect of the determinants. In particular, the coefficients effect of household size plays the most important role. The declining of household size leads to electricity consumption per capita increases due to the loss of economies of scale. As for the contribution of the endowments effect, the number of air condition and household income are the most important factors. Moreover, the coefficients effect of household size is crucial both for high-income and low-income households. Therefore, the policy implication means that the electricity pricing policy should take household size into consideration so as to offer electricity-saving incentives for households with smaller family size. Besides, some strategies, such as improving energy efficiency of appliances and providing the subsidy for the investment in energy-efficient appliances, should have a higher priority.

Co-Designed Interventions Yield Significant Electricity Savings among Low-Income Households in Makhanda South Africa

“…The generalised linear regression model showed important insights salient to our understanding of household electricity consumption. The results showed counter-intuitive results regarding the relationship between household size and electricity reduction, consistent with Huang [46]. This can be explained by the fact that bigger households might not always translate into high electricity consumption if they consist of working adult members who spend most of their daytime at work or if the household has few electrical gadgets to use.…”

“…For instance, in the "labour theory of value", Kurz [47] states that the economic value of a service is determined by the effort invested in acquiring it. Huang [46] found similar trends among Taiwanese households, arguing that employed people may consume less electricity because of the limited time they spend at home and the economic costs associated with high electricity consumption.…”

Influence of situational factors on household’s energy consumption behaviour

“…This will give researchers in the energy management and policy field a new perspective into the issues of household energy consumption. Deeper and more detailed studies in this area may help in providing information that will assist in the generation of more realistic energy efficiency indicators for households, especially in developing countries who have insufficient data required for energy efficiency indicators development and applications (Phylipsen, 2010; McNeil, et al , 2016; Huang, 2019). These indicators are important tools required in energy policy formulation to enable sustainable energy consumption in the household and other sectors; they are key to setting targets and assessing energy policy impacts (Oz et al , 2018; Quadrelli, 2015).…”