What do we know about how households' energy demands respond to changing energy prices in UK Regions?

Research output: Contribution to conferencePaper

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 estimate 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.

Conference

Conference57th Congress of the European Regional Science
CountryNetherlands
CityGroningen
Period29/08/171/09/17

Fingerprint

Household
Energy demand
Energy prices
Regional differences
Electricity
Energy policy
Energy
Modeling
Energy use
Demand model
Household income
Costs
Gas
Energy sector
Food
Regional variation
Energy consumption
Almost ideal demand system
Tax
Household behavior

Keywords

  • household energy consumption
  • energy elasticity
  • regional variations
  • microdata
  • energy policy
  • economics

Cite this

McIntyre, S. G. (2017). What do we know about how households' energy demands respond to changing energy prices in UK Regions?. Paper presented at 57th Congress of the European Regional Science, Groningen, Netherlands.
McIntyre, Stuart G. / What do we know about how households' energy demands respond to changing energy prices in UK Regions?. Paper presented at 57th Congress of the European Regional Science, Groningen, Netherlands.4 p.
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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 estimate 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.",
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McIntyre, SG 2017, 'What do we know about how households' energy demands respond to changing energy prices in UK Regions?' Paper presented at 57th Congress of the European Regional Science, Groningen, Netherlands, 29/08/17 - 1/09/17, .

What do we know about how households' energy demands respond to changing energy prices in UK Regions? / McIntyre, Stuart G.

2017. Paper presented at 57th Congress of the European Regional Science, Groningen, Netherlands.

Research output: Contribution to conferencePaper

TY - CONF

T1 - What do we know about how households' energy demands respond to changing energy prices in UK Regions?

AU - McIntyre, Stuart G.

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AB - 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 estimate 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.

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McIntyre SG. What do we know about how households' energy demands respond to changing energy prices in UK Regions?. 2017. Paper presented at 57th Congress of the European Regional Science, Groningen, Netherlands.