The impact of the energy price crisis on GB consumers: a difference-in-difference experiment

Andrew Burlinson, Monica Giulietti, Michael Waterson and Victor Ajayi
Additional contact information
Andrew Burlinson: School of Economics and Sheffield Urban International Trade and Environmental Economic Group, University of Sheffield
Monica Giulietti: Nottingham University Business School, University of Nottingham and UK Energy Research Centre
Victor Ajayi: Energy Policy Research Centre, University of Cambridge

CAGE Online Working Paper Series from Competitive Advantage in the Global Economy (CAGE)

Abstract: Two exogenous events, coupled with substantial data on individual household electricity and gas usage, enable us to examine detailed consumption effects of recent rises in gas and electricity prices in Britain resulting from the Russia-Ukraine conflict. We isolate two samples of consumers with similar characteristics, all initially on fixed price contracts. One group, forcibly moved to variable prices, suffered the price shock, the others remained on fixed prices. Our diff-in-diff framework captures the impacts on the former group, finding significant consumption effects, particularly regarding gas usage. Differing effects across richer and poorer households are revealed, the poorest greatly reducing consumption.

Keywords: Energy consumption; difference-in-differences; energy crisis; smart meters. JEL Classification: L94; E31; D12; I19 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-cis, nep-ene and nep-reg
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https://warwick.ac.uk/fac/soc/economics/research/c ... tions/wp727.2024.pdf

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Working Paper: The impact of the energy price crisis on GB consumers: a difference-in-difference experiment (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:cge:wacage:727

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