Determining the efficiency of residential electricity consumption
Loading...
Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Increasing energy efficiency is a key global policy goal for climate protection.
An important step towards 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 2,000 German households. Our results suggest that the
mean inefficiency amounts to around 20%, indicating a notable potential for energy savings.
Moreover, we find that the 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.
Description
Table of contents
Keywords
household electricity consumption, technical efficiency, stochastic frontier analysis