Household energy elasticities: GB and its regions

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

Abstract

A large body of literature has explored the production side of the energy sector at a regional level, and more generally geographic variation in electricity production and employment. Meanwhile, little attention appears to have been paid to exploring whether regional differences exist on the consumer side. In this paper we begin by exploring the available aggregate data for each UK region to better understand whether there exists evidence of differences in household behaviour with respect to energy consumption and use. Given differences in the composition of households across UK regions, we then estimate a demand model which controls for observable characteristics of households to explore whether there is any evidence of regional differences between how households' electricity and gas demands respond to changes in energy prices and household income. This is done using the UK Living Cost and Food (LCF) survey and a Quasi-Almost Ideal Demand System. Evidence on whether there are these regional differences is important given the wide variety of energy-economy-environment modelling that takes place at a regional level, particularly in the UK. More generally, evidence of regional variation in how households respond to changing energy prices has important implications for the use of price (through applying a tax on the use of energy) as an instrument of energy policy. In the UK, there are a number of dimensions of energy policy which, while intended to be spatially blind, have a distinct spatially differentiated impact. This makes understanding any regional differences important in understanding the impact of these policies.
Original languageEnglish
Title of host publicationWestern Regional Science Association
Subtitle of host publication55th Annual Meeting
Publication statusPublished - 17 Feb 2016
EventWestern Regional Science Association 55th Annual Meeting - Hilton Waikoloa Village, United States
Duration: 14 Feb 201617 Feb 2016

Conference

ConferenceWestern Regional Science Association 55th Annual Meeting
CountryUnited States
CityHilton Waikoloa Village
Period14/02/1617/02/16

Keywords

  • energy elasticities

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    McIntyre, S. (2016). Household energy elasticities: GB and its regions. In Western Regional Science Association: 55th Annual Meeting