Residential electricity consumption over the demographic transition in the Philippines

Michael Abrigo and Ma. Kristina P. Ortiz

The Journal of the Economics of Ageing, 2024, vol. 27, issue C

Abstract: The global shifts in population age distribution brings about both challenges and opportunities. On the one hand, demographic transitions present an opportunity for sustained economic growth. However, it also poses challenges in meeting future consumption requirements. In this paper, we performed an index decomposition analysis linked with an economic-demographic model to trace how population age structure change may affect household electricity demand with the Philippines as a specific case study. Our results show that population ageing has a direct, significant, and persistent effect on residential electricity demand growth. In economies like the Philippines where the elderly consumes more electricity per person relative to younger cohorts, population ageing is expected to raise aggregate electricity demand through sheer compositional accounting effect. But even in economies where average electricity consumption is flat or declining in age, demographic dividends are projected to raise aggregate electricity consumption by expanding electricity access and increasing usage intensity across all age groups through a positive income effect. The permanence and irreversibility of population ageing, and the persistence of economic growth from demographic change may drive continuing growth in the energy sector.

Keywords: Demographic change; Population ageing; Electricity demand (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2212828X24000033

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:joecag:v:27:y:2024:i:c:s2212828x24000033

DOI: 10.1016/j.jeoa.2024.100503

Access Statistics for this article

The Journal of the Economics of Ageing is currently edited by D.E. Bloom, A. Sousa-Poza and U. Sunde

More articles in The Journal of the Economics of Ageing from Elsevier
Bibliographic data for series maintained by Catherine Liu ().