The role of income in energy consumption behaviour: Evidence from French households data

The main purpose of this paper is to characterise quantitatively the impact of income on household energy consumption in the residential and transport sectors. Starting from the data collected in a paper survey, we analyse the extent of the constraint experienced by households in terms of equipment purchasing behaviour and daily energy consumption. This analysis shows that the least well-off households are particularly constrained since the share of their budget represented by these energy services is very large (15-25%), and this corresponds to a level of energy service well below that of the better-off households. The case of space-heating shows a factor of 2 in terms of level of comfort achieved between the extreme 10-percentiles. These households also face a strong capital constraint for equipment purchases. This leads either to a large increase in the required rate of return or to a reduction in the proportion of households that are prepared to replace their equipment earlier. The least well-off households are thus doubly constrained, since it is more difficult for them to invest. In our opinion, it is crucial to take into account this observation in the context of political measures aimed at reducing households'CO(2) emissions. (C) 2011 Elsevier Ltd. All rights reserved.