Working Paper

Household Formation and Residential Energy Demand: Evidence from Japan


  • Schröder
  • C.
  • Rehdanz
  • K.
  • Narita
  • D.
  • Okubo
  • T.
Publication Date

We use a large household panel for Japan (Keio Household Panel Survey) to estimate household-size economies in energy consumption. The household-size economies we obtain are significant and sizable: the per-capita energy-related spending of a two-adult household is only about two-thirds of the expenditure of a one-adult household. We use the estimates of household-size economies to explore how the demographic trend toward smaller-sized household units changes energy demand in the Japanese household sector. Between 2005 and 2010, for example, average household size in Japan decreased by about five percent. The resulting economy-wide loss in household-size economies increased energy demand in the household sector by about four percent.

Kiel Institute Expert


Key Words

  • Demografischer Wandel
  • demographic change
  • energy consumption
  • household formation
  • household-decision making

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