When I was your age...Population Dynamics and Household Energy Consumption

Rossella Bardazzi and Maria Grazia Pazienza

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: Generational values inspire behaviour in numerous areas such as politics, labour markets, social cohesion, consumption and energy use. Stephenson et al. (2015) highlight the role of so-called energy culture in shaping the behaviour of different population cohorts regarding energy consumption and environmental protection, and empirical studies have confirmed the relevance of cohort effects in residential and transport-related energy use (Bardazzi and Pazienza, 2017; Chancel, 2014). This paper aims to assess how ageing and evolving generational energy cultures in Italy affect the future path of energy consumption, considering the expected changes in the Italian population size, composition and location. We use a pseudo-panel of Italian households to estimate cohort and age effects by macro-area and then we combine these effects with official demographic projections to forecast the potential consequences for energy consumption up to 2050. Our findings show that age and generation are key determinants of household behaviour regarding residential energy consumption and these effects interplay with future population dynamics, which are also area-specific due to internal migration.

Keywords: Household energy demand; Pseudo-panel; Population age structure; Cohort effects (search for similar items in EconPapers)
JEL-codes: D12 J11 Q4 Q56 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2019
New Economics Papers: this item is included in nep-age, nep-ene and nep-eur
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