Modelling Household Energy Expenditures Using Micro-Data

Baker, Paul; Blundell, Richard; Micklewright, John

doi:10.2307/2233767

Cited by 184 publications

(149 citation statements)

References 12 publications

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Section: Evidence Of the Direct Effectmentioning

confidence: 99%

“…For example, Baker et al(1989) found that own-price elasticity of gas consumption by UK households was two times greater for households in the lowest income decile than the highest. In support of Baker et al (1989), Milne and Boardman (2000)observe higher rebounds in low-income houses for improvements in heating technology. Also, Hong et al (2006) used evaluation methods to assess the magnitude of rebound effects from efficient heating installations in lower income homes in the United Kingdom.…”

Section: Evidence Of the Direct Effectmentioning

confidence: 99%

“…This is the approach adopted in the thesis Second, of particular interest is the potential for variation in the magnitude of the indirect effect for consumption pattern changes due to income level variation of households. One might expect that since the theory predicts a trade-off between direct and indirect effects, and direct effects have been observed to diminish with rising incomes (Baker et al, 1989;Milne and Boardman, 2000;Roy, 2000) that indirect effects may increase with rising income levels. Yet LCA data suggests that the opposite might be true, due to the decrease in greenhouse gas and resource intensity of luxury goods, and the growing relative size of indirect energy consumption and emissions by households (Lenzen and Dey, 2002;Lenzen et al, 2006b).…”

Section: Gaps Inthe Literaturementioning

confidence: 99%

See 2 more Smart Citations

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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The main objective of the thesis is to seek insights into the theory, and provide empirical evidence of rebound effects. Rebound effects reduce the environmental benefits of environmental policies and household behaviour changes. In particular, win-win demand side measures, in the form of energy efficiency and household consumption pattern changes, are seen as ways for households and businesses to save money and the environment. However, these savings have environmental impacts when spent, which are known as rebound effects. This is an area that has been widely neglected by policy makers.This work extends the rebound effect literature in three important ways, (1) it incorporates the potential for variation of rebound effects with household income level, (2) it enables the isolation of direct and indirect effects for cases of energy efficient technology adoption, and examines the relationship between these two component effects, and (3) it expands the scope of rebound effect analysis to include government taxes and subsidies. MACROBUTTON HTMLDirectUsing a case study approach it is found that the rebound effect from household consumption pattern changes targeted at electricity is between 5 and 10%. For consumption pattern changes with reduced vehicle fuel use, the rebound effect is in the order of 20 to 30%. Higher income households in general are found to have a lower total rebound effect; however the indirect effect becomes relatively more significant at higher household income levels. In the win-lose case of domestic photovoltaic electricity generation, it is demonstrated that negative rebound effects can occur, which can potentially amplify the environmental benefits of this action.The rebound effect from a carbon tax, which occurs due to the re-spending of raised revenues, was found to be in the range of 11-32%. Taxes and transfers between households of different income levels also have environmental implications. For example, a more progressive tax structure, with increased low income welfare payments is likely to increase greenhouse gas emissions. Subsidies aimed at encouraging environmentally friendly consumption habits are also subject to rebound effects, as they constitute a substitution of government expenditure for household expenditure. For policy makers, these findings point to the need to incorporate rebound effects in the environmental policy evaluation process.' KeywordsRebound effect, demand side management, direct rebound effect, indirect rebound effect, greenhouse gas emissions, CO 2 , household consumption patterns, efficiency, energy, conservation, natural resources. The energy and emissions produced at other stages of the production chain outside of the household scope. vi List of Tables and +/-is efficiency net effect minus the conservation net effect with negative values in parentheses). 66 Table 5.5: Rebound effects at mean and median total expenditure levels for separated fuel efficiency case (indirect reduction is the efficiency indirect rebound minus the conservation indir...

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Section: Evidence Of the Direct Effectmentioning

confidence: 99%

Section: Evidence Of the Direct Effectmentioning

confidence: 99%

Section: Gaps Inthe Literaturementioning

confidence: 99%

See 1 more Smart Citation

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

Vivanco

Freire‐González

Kemp

et al. 2014

Environ. Sci. Technol.

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“…This flexibility is advantageous in the light of the close and potentially non-linear relationship between affluence and material footprints found on the country-level (Pothen and Welsch, 2017). Demand systems have been used to study households' energy use and carbon emissions (Baker et al, 1989;Creedy and Sleeman, 2006;Labandeira et al, 2006;Pashardes et al, 2014;Sommer and Kratena, 2017;Tovar Reaños and Wölfing, 2018) but, to our knowledge, this is the first study employing a demand system to investigate material footprints. It is, furthermore, the first to use the EASI demand system to study sustainable consumption.…”

Section: Introductionmentioning

confidence: 99%

The Distribution of Material Footprints in Germany

Pothen

Reaños

2018

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. The Distribution of Material Footprints in Germany

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“…Although in disaggregated models one representative consumer per group is used, still the process remains arbitrary and judgmental. Assimakopoulos (1992) suggested an approach of endogenously obtaining homogeneous groups of consumers using a two stage process: a 33 See Dubin and McFadden (1984), Baker and Blundell (1991) and Baker et al (1989) as well. structural analysis of households using statistical techniques and then modeling demand equations.…”

Section: Econometric Approachmentioning

confidence: 99%

Energy Demand Models For Policy Formulation: A Comparative Study Of Energy Demand Models

Bhattacharyya¹,

Timilsina²

2009

Policy Research Working Papers

127

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This paper critically reviews existing energy demand forecasting methodologies highlighting the methodological diversities and developments over the past four decades in order to investigate whether the existing energy demand models are appropriate for capturing the specific features of developing countries. The study finds that two types of approaches, econometric and end-use accounting, are used in the existing energy demand models. Although energy demand models have greatly evolved since the early 1970s, key issues such as the poor-rich and urban-rural divides, traditional energy resources, and differentiation between commercial and non-commercial energy This paper-a product of the Environment and Energy Team, Development Research Group-is part of a larger effort in the department to study climate change and clean energy issues. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The author may be contacted at gtimilsina@worldbank.org.commodities are often poorly reflected in these models. While the end-use energy accounting models with detailed sector representations produce more realistic projections compared with the econometric models, they still suffer from huge data deficiencies especially in developing countries. Development and maintenance of more detailed energy databases, further development of models to better reflect developing country context, and institutionalizing the modeling capacity in developing countries are the key requirements for energy demand modeling to deliver richer and more reliable input to policy formulation in developing countries. Energy Demand Models for Acronyms and Definitions DefinitionsA few terms appear recurrently in this report: tool, model, method, methodology, approach and framework. We give the dictionary meaning of these terms and indicate how we have used them in this paper.A "tool" is "the means whereby some act is accomplished" or "an implement used in the practice of a vocation". In this paper, we use the term to imply an implement or a kit that is used in analyzing energy demand or forecasting demand or in analyzing the energy system in its part or whole.A "model" is defined as "a simplified description of a complex entity or process". In this paper, we use models to imply a simplified representation of a complex problem or process, often in mathematical terms, that helps us in conceptualizing and analyzing the problem. In this sense, a model can be a tool or can employ a number of tools in a systematic way.A "framework" is defined as "a structure supporting or containing something" or "a simplified description of a complex entity or process". In this paper, we have used this term interchangeably with a model.A "method" is defined as "a way of doing something, especially a systematic way; implies an orderly logical arrangement (usually in steps)". We have used the term to mean a logical, systematic approach for accomplishing a task.An "approach" is defined as the "ideas or actions intended to deal with a problem or situatio...

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Modelling Household Energy Expenditures Using Micro-Data

Cited by 184 publications

References 12 publications

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

The Remarkable Environmental Rebound Effect of Electric Cars: A Microeconomic Approach

The Distribution of Material Footprints in Germany

Energy Demand Models For Policy Formulation: A Comparative Study Of Energy Demand Models

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