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Habit Formation and Consumption of Energy for Heating: Evidence from a Panel of Danish Households

Søren Leth-Petersen

The Energy Journal, 2007, vol. Volume 28, issue Number 2, 35-54

Abstract: In this paper we ask if consumption of energy for space heating by households is habit forming. A model of intertemporal consumption allocation allowing for habit-forming preferences is estimated on a register-based panel data set with high quality information about consumption of natural gas for a sample of Danish households. Results indicate that preferences are weakly habit forming.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2007
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