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Determining the efficiency of residential electricity consumption
[journal article]
Abstract Increasing energy efficiency is a key global policy goal for climate protection. An important step toward an optimal reduction of energy consumption is the identification of energy saving potentials in different sectors and the best strategies for increasing efficiency. This paper analyzes these pot... view more
Increasing energy efficiency is a key global policy goal for climate protection. An important step toward an optimal reduction of energy consumption is the identification of energy saving potentials in different sectors and the best strategies for increasing efficiency. This paper analyzes these potentials in the household sector by estimating the degree of inefficiency in the use of electricity and its determinants. Using stochastic frontier analysis and disaggregated household data, we estimate an input requirement function and inefficiency on a sample of 2000 German households. Our results suggest that the mean inefficiency amounts to around 20%, indicating a notable potential for energy savings. Moreover, we find that household size and income are among the main determinants of individual inefficiency. This information can be used to increase the cost-efficiency of programs aimed to enhance energy efficiency.... view less
Keywords
microcensus; energy consumption; electricity; private household; stochastics; efficiency analysis; climate protection; energy saving; Federal Republic of Germany
Classification
Ecology, Environment
Free Keywords
Mikrozensus 2013; stochastic frontier analysis; technical efficiency
Document language
English
Publication Year
2021
Page/Pages
p. 2897-2923
Journal
Empirical Economics, 60 (2021) 6
DOI
https://doi.org/10.1007/s00181-020-01967-4
ISSN
1435-8921
Status
Published Version; peer reviewed