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A Residential Energy Demand System for Spain

Xavier Labandeira (), Jose Labeaga and Miguel Rodriguez ()

Working Papers from Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research

Abstract: Sharp price fluctuations and increasing environmental and distributional concerns, among other issues, have led to a renewed academic interest in energy demand. In this paper we estimate, for the first time in Spain, an energy demand system with household microdata. In doing so, we tackle several econometric and data problems that are generally recognized to bias parameter estimates. This is obviously relevant, as obtaining correct price and income responses is essential if they may be used for assessing the economic consequences of hypothetical or real changes. With this objective, we combine data sources for a long time period and choose a demand system with flexible income and price responses. We also estimate the model in different sub-samples to capture varying responses to energy price changes by households living in rural, intermediate and urban areas. This constitutes a first attempt in the literature and it proved to be a very successful choice.

Date: 2005-02
New Economics Papers: this item is included in nep-ene and nep-mic
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Journal Article: A Residential Energy Demand System for Spain (2006) Downloads
Working Paper: A Residential Energy Demand System for Spain (2005) Downloads
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