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Effects of renting on household energy expenditure: Evidence from Australia

Best, Rohan; Burke, Paul

Description

This paper uses household survey data from Australia to investigate whether renters face larger energy bills than otherwise similar households. We find that a negative unconditional effect of renting on residential electricity expenditure becomes positive when controlling for log net wealth, with renters on average spending about 8% more than otherwise similar households. This is a larger effect than in most prior studies. The effect operates via higher usage quantities rather than higher...[Show more]

dc.contributor.authorBest, Rohan
dc.contributor.authorBurke, Paul
dc.date.accessioned2022-10-14T02:47:00Z
dc.identifier.citationBest, Rohan and Burke, Paul J. 2022. Effects of renting on household energy expenditure: Evidence from Australia. Energy Policy 166, 113022.
dc.identifier.issn0301-4215
dc.identifier.urihttp://hdl.handle.net/1885/274571
dc.description.abstractThis paper uses household survey data from Australia to investigate whether renters face larger energy bills than otherwise similar households. We find that a negative unconditional effect of renting on residential electricity expenditure becomes positive when controlling for log net wealth, with renters on average spending about 8% more than otherwise similar households. This is a larger effect than in most prior studies. The effect operates via higher usage quantities rather than higher average prices, and a similar effect is found for overall residential energy expenditure including natural gas. Central to the story is that renters tend to have lower net wealth, and net wealth is associated with higher energy use due to reasons including additional appliance ownership. This makes net wealth an important control. The findings cast light on the potential for more ambitious policy responses to reduce energy-related disadvantages faced by renters in Australia. There is also scope for further research into whether similarly large effects are evident in other countries.
dc.format.mimetypeapplication/pdf
dc.language.isoen_AU
dc.publisherElsevier
dc.rights© 2022 Elsevier Ltd
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.sourceEnergy Policy
dc.subjectenergy expenditure
dc.subjectelectricity consumption
dc.subjectwealth
dc.subjectrent
dc.subjectsplit incentive
dc.titleEffects of renting on household energy expenditure: Evidence from Australia
dc.typeJournal article
local.identifier.citationvolume166
dcterms.dateAccepted2022-05
dc.date.issued2022-07
local.identifier.absfor380119 - Welfare economics
local.publisher.urlhttps://www.elsevier.com/en-au
local.type.statusAccepted Version
local.contributor.affiliationBurke, P. J., College of Arts and Social Sciences, The Australian National University
local.description.embargo2024-07-30
local.bibliographicCitation.startpage1
local.bibliographicCitation.lastpage13
local.identifier.doi10.1016/j.enpol.2022.113022
local.identifier.absseo170103 - Residential energy efficiency
dcterms.accessRightsOpen Access
dc.provenancehttps://v2.sherpa.ac.uk/id/publication/16509..."The Accepted Version can be archived in an Institutional Repository. 24 Months. CC BY-NC-ND." from SHERPA/RoMEO site (as at 14/10/2022).
dc.rights.licenseCC BY-NC-ND
CollectionsANU Research Publications

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