Determinants of residential space heating expenditures in Great Britain

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.Abstract: In Great Britain several policy measures have been implemented in order to increase energy efficiency and to reduce carbon emissions. In the domestic sector, these targets can be achieved by improving space heating efficiency and, hence, decrease heating expenditures. However, before implementing policy measures it is necessary to better understand determinants of heating expenditures. In this paper, we examine determinants of heating expenditures which include socio-economic and building characteristics as well as heating technologies and meteorological observations. In contrast to most other studies, we use Panel data for investigating household's demand for heating in Great Britain. Our analysis covers 15 years, starting in 1991, and more than 5,000 households that have been re-interviewed annually; altogether our sample covers more than 64,000 households. Our empirical findings suggest that in Great Britain owners generally have higher heating expenditures than renters. These differences in expenditures can be explained by building characteristics. Renters mainly live in flats and most of the owners live in detached/semi-detached houses. Generally, flats are more energy efficient than houses. Our results also imply that a number of socio-economic criteria have a significant influence on heating expenditures, independent from the central heating fuel type. Policy measures should not only focus on insulation standards but also on different household types. Especially elderly people and households with children should be target groups. AbstractIn Great Britain several policy measures have been implemented in order to increase energy efficiency and to reduce carbon emissions. In the domestic sector, these targets can be achieved by improving space heating efficiency and, hence, decrease heating expenditures. However, before implementing policy measures it is necessary to better understand determinants of heating expenditures.In this paper, we examine determinants of heating expenditures which include socio-economic and building characteristics as well as heating technologies and meteorological observations. In contrast to most other studies, we use Panel data for investigating household's demand for heating in Great Britain. Our analysis covers 15 years, starting in 1991, and more than 5,000 households that have been re-interviewed annually; altogether our sample covers more than 64,000 households.Our empirical findings suggest that in Great Brita...

Residential energy use and conservation: Economics and demographics

“…This is low compared to other studies (for example, Rehdanz (2007), and Meier and Rehdanz (2010), who explain 17 to 27 percent of gas consumption for panels of German and British homes), but standardizing energy consumption by household size absorbs much of the crosssectional variation. Dwelling size is a major determinant of gas consumption, with an elasticity of 0.15.…”

Housing Tenure, Energy Consumption and the Split-Incentive Issue in Australia

“…Some studies have included housing tenure as a variable and therefore have a particular significance in the present context. Typically the data source is surveys specifically conducted for the purposes of analysing energy consumption; two exceptions are Rehdanz (2007) and Meier and Rehdanz, 2010), which are most similar in approach to our own, and are discussed further below.…”

“…A key difference is that Rehdanz (2007) does not control for climate (though there are 'controls' for region) as Germany is mostly temperate and not nearly as diverse in temperature range as other countries in which similar studies have been conducted. However, Meier and Rehdanz (2010) do control for climate using data on heating degree days, a climate measure which we also utilise in our analysis.…”

“…Their household energy expenditures are modelled; on controlling for prices, personal and property characteristics the study detects lower energy expenditures if properties are owner occupied. Meier and Rehdanz (2010) adopts a similar approach, using 64000 observations from the 1991-2005 British Household Panel Survey. In terms of methodology and type of data, Rehdanz (2007) and Meier and Rehdanz (2010) are similar to that employed here.…”

“…Meier and Rehdanz (2010) adopts a similar approach, using 64000 observations from the 1991-2005 British Household Panel Survey. In terms of methodology and type of data, Rehdanz (2007) and Meier and Rehdanz (2010) are similar to that employed here. A key difference is that Rehdanz (2007) does not control for climate (though there are 'controls' for region) as Germany is mostly temperate and not nearly as diverse in temperature range as other countries in which similar studies have been conducted.…”