Runa Nesbakken

Price sensitivity of residential energy consumption in Norway

The main aim of this paper is to test the stability of the results of a model which focus on the relationship between the choice of heating equipment and the residential energy consumption. The results for the income and energy price variables are of special interest. Stability in the time dimension is tested by applying the model on micro data for each of the years 1993, 1994 and 1995. The parameter estimates are stable within a 95 per cent confidence interval. However, the estimated impact of the energy price variable on energy consumption is considerably weaker in 1994 than in 1993 and 1995. The results for two different income groups in the pooled data set are also subject to stability testing. The energy price sensitivity in residential energy consumption is found to be higher for high-income households than for low-income households.

Energy Consumption for Space Heating: A Discrete-Continuous Approach

Energy demand for space heating is estimated using a discrete-continuous choice model which focuses on the relationship between the choice of heating equipment and energy consumption. The model is estimated on Norwegian micro data, and the two stages of the model are estimated simultaneously. The capital cost and the operating cost of the heating systems are both found to have a significant impact on the choice of heating system. Furthermore, the results show that household characteristics are important variables in residential energy models. Energy price elasticities and income elasticities are also estimated. Copyright 2001 by The editors of the Scandinavian Journal of Economics.

Norwegian emissions of CO 2 1987–1994

Several countries have introduced taxes on fossil fuels with the aim of reducing atmospheric emissions, partly because of local environmental goals (SO2, NOx) and partly to participate in a global effort to reduce emissions of greenhouse gases. Many macroeconomic studies, based on both global and national models, have been made of how emissions can be reduced with the help of taxes and the consequent reduction in GDP following the introduction of such taxes. Norway has had a CO2 tax for five years, thereby providing a unique opportunity to evaluate the effects of this tax on emissions. The paper provides a counterfactual analysis of energy consumption and emissions if no CO2 taxes had been introduced, compared with the actual situation in which such taxes exist. The effect of a CO2 tax on oil consumption, and thus CO2 emissions is studied on the basis of partial economic models for various sectors of the Norwegian economy. The study indicates that the CO2 tax has had an impact on CO2 emissions in Norway.

Norwegian Emissions of CO2 1987–1994 A Study of Some Effects of the CO2 Tax

Several countries have introduced taxes on fossil fuels with the aim of reducing atmospheric emissions, partly because of local environmental goals (SO2, NOx) and partly to participate in a global effort to reduce emissions of greenhouse gases. Many macroeconomic studies, based on both global and national models, have been made of how emissions can be reduced with the help of taxes and the consequent reduction in GDP following the introduction of such taxes. Norway has had a CO2 tax for five years, thereby providing a unique opportunity to evaluate the effects of this tax on emissions. The paper provides a counterfactual analysis of energy consumption and emissions if no CO2 taxes had been introduced, compared with the actual situation in which such taxes exist. The effect of a CO2 tax on oil consumption, and thus CO2 emissions, is studied on the basis of partial economic models for various sectors of the Norwegian economy. The study indicates that the CO2 tax has had an impact on CO2 emissions in Norway.