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Household formation and residential energy demand: Evidence from Japan

Carsten Schröder (), Katrin Rehdanz, Daiju Narita and Toshihiro Okubo ()

No 1836, Kiel Working Papers from Kiel Institute for the World Economy (IfW)

Abstract: We use a large household panel for Japan (Keio Household Panel Survey) to estimate household-size economies in energy consumption. The household-size economies we obtain are significant and sizable: the per-capita energy-related spending of a two-adult household is only about two-thirds of the expenditure of a one-adult household. We use the estimates of household-size economies to explore how the demographic trend toward smaller-sized household units changes energy demand in the Japanese household sector. Between 2005 and 2010, for example, average household size in Japan decreased by about five percent. The resulting economy-wide loss in household-size economies increased energy demand in the household sector by about four percent.

Keywords: energy consumption; household-size economies; demographic change; household formation (search for similar items in EconPapers)
Date: 2013
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