Electricity prices and energy intensity in Europe

The purpose of this article is to analyse the impact of residential electricity prices on energy intensity in Europe. The research is primarily based on a panel analysis for the European Union (EU-28) member states plus Norway over the period 1990–2015, to which a fixed-effect estimator was applied....

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Bibliographic Details
Published in:Utilities policy 2017-08, Vol.47, p.58-68
Main Authors: Verbič, Miroslav, Filipović, Sanja, Radovanović, Mirjana
Format: Article
Language:English
Subjects:
Electricity prices
Energy intensity
Europe
Panel analysis
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Summary:The purpose of this article is to analyse the impact of residential electricity prices on energy intensity in Europe. The research is primarily based on a panel analysis for the European Union (EU-28) member states plus Norway over the period 1990–2015, to which a fixed-effect estimator was applied. The results suggest that the residential electricity price has one-third on energy intensity, taking into account the control variables. This implies that the level and structure of electricity prices should be considered as a potential energy policy tool for improving energy efficiency by reducing energy intensity. The results also suggest that energy intensity in Europe was favourably affected by the restructuring of industrial companies in transitional economies, the implementation of national programmes for improvement of energy efficiency, and the introduction of EU Emissions Trading Scheme. •Analysis of the impact of residential electricity prices on energy intensity was performed.•Panel data for the EU-28 and Norway were analysed for the period 1990–2015.•Residential electricity price has a significant influence on energy intensity.•Structural characteristics and processes have a favourable effect on energy intensity.
ISSN:0957-1787
1878-4356
DOI:10.1016/j.jup.2017.07.001