A life-cycle theory analysis of French household electricity demand

This paper develops a pseudo-panel approach to examine household electricity demand behavior through the life cycle and its response income variations help strengthen energy policy-making process. Our empirical methodology is based on three rich independent microdata surveys (the National Housing Surveys), which are representative of French housing sector. The resulted sample covers 2006–2016 period. Using within estimations, this finds striking evidence that elasticity residential 0.22, averaged over our four cohorts generations. In light other works, estimate stands in lower range. results also show consumption follows an inverted U-shaped distribution as function age household’s head. Most notably, it appears households at mid-point their relatively largest consumers electricity. outcome has important implications for policy-making. Any public policy aimed reducing should consider differentiation according position cycle, therefore target priority highest level consumption.