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Household energy consumption versus income and relative standard of living: A panel approach

✍ Scribed by Roselyne Joyeux; Ronald D. Ripple


Book ID
104018151
Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
248 KB
Volume
35
Category
Article
ISSN
0301-4215

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✦ Synopsis


Our fundamental premise is that energy consumption at the household level is a key indicator of standard of living. We employ stateof-the-art panel cointegration techniques to evaluate the nature of the relationship between income measures and energy consumption measures for seven East Indian Ocean countries. The general finding is that income and household electricity consumption are not cointegrated. Given this finding, we conclude that standard of living measures that rely on income measures and do not include household-level energy consumption information will necessarily miss important indications of both levels and changes of standard of living.