We first examine the determinants of household expenditures on space heating and hot water supply in Germany. A number of socio-economic characteristics of households are included along with building characteristics. Our analysis covers information on more than 12,000 households in Germany for the years 1998 and 2003.
The analysis continues by investigating whether different kinds of households are affected differently by increases in energy prices. Households in owner-occupied properties are less affected compared to those in rented accommodation, this could be because owners are more likely to have installed energy-efficient heating and hot water supply systems and landlords have less of an incentive to improve the conditions of their rented accommodations. An energy policy targeting especially the latter group might benefit not only households in rented accommodation, but might also increase energy-efficiency and reduce greenhouse gas emissions as well.