Determinants of Electricity Expenditure by Private Households. Analysis of the 2018 Survey of Income and Expenditure for Germany

Abstract

Determinants of household electricity consumption measured by smart meters found by the authors in a scoping review were analyzed for the example of Germany utilizing the 2018 Survey of Income and Expenditure. All variables identified in the scoping review were covered in the survey (number and type of appliances, sociodemographic, and dwelling-related aspects). One can therefore use this large representative data set to test these relationships for German households. Expenditure on electricity is considered an indicator of household electricity consumption. The determinants show weak to moderate correlations with energy expenditure in bivariate analyses. The multivariate analysis shows effects of household-specific, dwelling-related, and appliance-specific factors. Models considering only one aspect overestimate this effect. Thus, all three aspects should be considered simultaneously when explaining residential electricity consumption. The largest effects are found for electricity as the main energy source for heating, the number of household members, as well as their presence at home. While household structure plays an important part in explaining residential energy consumption, dwelling and appliance-related aspects influence it as well. The latter aspects may be influenced by appropriate policy measures.

Keywords: Electricity consumption, private household, expenditure survey, residential electricity consumption, household structure