Composition and Sensitivity of Residential Energy Consumption

Jiménez, Raúl; Yépez-García, Ariel

doi:10.18235/0000504

Cited by 7 publications

(8 citation statements)

References 27 publications

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“…The greatest variance is observed for transport fuels, for which the elasticity growths up to the 25th income percentile and then declines for richer segments. These estimates are consistent with those of Foster et al (2000) and Jimenez et al (2018), who find that the income elasticity of energy consumption tend to decrease to the right of the income distribution. These results may reflect a decreasing marginal utility in energy consumption and/or access to durable assets that are more energy-efficient.…”

Section: Estimated Income Elasticities Along the Income Distributionsupporting

confidence: 92%

“…Meier et al (2013) find that energy spending elasticities increase nonlinearly with income. In contrast, for the case of energy consumption, Foster et al (2000) (at the household level) and Jimenez et al (2018) (at the country level) find evidence of an inverse U-shaped relationship, in the sense that energy consumption tends to stabilize, and even reduce, at higher income levels.…”

Section: Empirical Approachmentioning

confidence: 94%

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Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

Mori

Yépez-García

2020

LAER

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The paper investigates the determinants of household energy spending and energy budget shares, with a focus on understanding their non-linear relationship with income, and the presence of economies of scale. The analysis is based on a unique, harmonized collection of official household surveys from 13 Latin American countries. This dataset allows distinguishing between expenditures on electricity, domestic gas, and fuel for private transportation, providing a comprehensive distributional view of the energy spending profile of the residential sector. The estimated empirical Engel curves behave similarly; however, the derived income elasticities show marked distinctions by fuel, and their actual values depend on the households’ relative position over the income distribution. For electricity, the elasticity tends to increase in income but stabilize at the wealthiest segments. For gas and transport fuel, it decreases under different income paths. In this dataset, the examination returns income elasticities on the (0,1) interval, suggesting that energy commodities are necessity goods. However, the distribution of aggregate energy expenditure needs to be considered. Specifically, there is a great concentration among the richer groups, particularly for transport fuels, where the top quintile gathers more than half of the aggregate spending. The results also indicate economies of scale––for electricity and domestic gas––with respect to family-age composition, and to a lesser extent with respect to dwelling size. In the case of electricity, these economies are more pronounced for richer households. These results join the previous literature in emphasizing the relevance of accounting for household demographic and socioeconomic trends for energy management.

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Section: Estimated Income Elasticities Along the Income Distributionsupporting

confidence: 92%

Section: Empirical Approachmentioning

confidence: 94%

Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

Mori

Yépez-García

2020

LAER

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“…In contrast, for the case of energy consumption, Foster et al (2000) (at the household level) and Jimenez and Yépez-García (2016) (at the country level) find evidence of an inverse U-shaped relationship, in the sense that energy consumption tends to stabilize, and even reduce, at higher income levels.…”

Section: Empirical Approachmentioning

confidence: 94%

Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

Jiménez¹,

Yépez-García²

2017

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work is licensed under a Creative Commons IGO 3.0 AttributionNonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose, as provided below. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Following a peer review process, and with previous written consent by the Inter-American Development Bank (IDB), a revised version of this work may also be reproduced in any academic journal, including those indexed by the American Economic Association's EconLit, provided that the IDB is credited and that the author(s) receive no income from the publication. Therefore, the restriction to receive income from such publication shall only extend to the publication's author(s). With regard to such restriction, in case of any inconsistency between the Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives license and these statements, the latter shall prevail.Note that link provided above includes additional terms and conditions of the license. The paper investigates the determinants of household energy spending and energy budget shares, with a focus on understanding their non-linear relationship with income, and the presence of economies of scale. The analysis is based on a unique, harmonized collection of official household surveys from 13 Latin American countries. This dataset allows distinguishing between expenditures on electricity, domestic gas, and fuel for private transportation, providing a comprehensive distributional view of the energy spending profile of the residential sector. The estimated empirical Engel curves behave similarly; however, the derived income elasticities show marked distinctions by fuel, and their actual values depend on the households' relative position over the income distribution. For electricity, the elasticity tends to increase in income but stabilize at the wealthiest segments. For gas and transport fuel, it decreases under different income paths. In this dataset, the examination returns income elasticities on the (0,1) interval, suggesting that energy commodities are necessity goods. However, the distribution of aggregate energy expenditure needs to be considered. Specifically, there is a great concentration among the richer groups, particularly for transport fuels, where the top quintile gathers more than half of the aggregate spending. The results also indicate economies of scale--for electricity and domestic gas--with respect to family-age composition, and to a lesser extent with respect to dwelling size. In the case of electricity, these economies are more pronounced fo...

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“…Cash transfers targeted to poor people are in Source: Household survey data (Jimenez and Yépez-García, 2016) .…”

Section: Unconditional Welfare Impactsmentioning

confidence: 99%

“…These 14 categories were matched to the 57 sectors in the IO tables . All harmonized data comes from Jimenez and Yépez-García (2016) .…”

Section: Towards Stability In Price-setting In Latin America and The mentioning

confidence: 99%

The Other Side of the Boom: Energy Prices and Subsidies in Latin America and the Caribbean during the Super-Cycle

Marchán¹,

Espinasa²,

Yépez-García³

2017

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Composition and Sensitivity of Residential Energy Consumption

Cited by 7 publications

References 27 publications

Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

Understanding the Drivers of Household Energy Spending: Micro Evidence for Latin America

The Other Side of the Boom: Energy Prices and Subsidies in Latin America and the Caribbean during the Super-Cycle

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