Abstract
This study employs threshold models to investigate the nonlinear relationship between household composition and residential electricity consumption. Household size and level of electricity use are employed as the threshold variables. Household data are obtained from Taiwan’s 2020 Family Income and Expenditure Survey. The results verify that the effects of household composition and household size on household electricity use differ depending on the specific household size and level of electricity use. The economic scale effect on electricity use per capita due to an additional member only appears for households with three or more members. Among households with one or two members, an increase in the number of members aged 25–44 years results in more electricity use than an increase in the number of members of other age groups, reflecting the inefficient electricity use among those aged 25–44 years. Moreover, the economic scale effect of an increasing number of members is weaker for households using more electricity. For households with the highest level of electricity use, an elderly member would contribute to more electricity use than a member of another age group. Given the trends of demographic change and global warming, electricity demand can be expected to increase in the future due to population aging, declining family size, and higher dependency on electricity. Policy makers should improve residential electricity efficiency and adopt strategies specifically for small households.
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The author would like to thank the Ministry of Science and Technology, Taiwan, for providing funding support (MOST 108-2410-H-275-002).
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Huang, WH. Nonlinear relationship between household composition and electricity consumption: optimal threshold models. Optim Eng 23, 2261–2292 (2022). https://doi.org/10.1007/s11081-022-09732-5
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DOI: https://doi.org/10.1007/s11081-022-09732-5