Towards a household model of UK domestic energy demand

Abstract Most existing analyses of domestic energy demand in the UK are conducted at the aggregate level. The paper argues the case for modelling at the level of the individual household. Some results are presented from a microeconometric model estimated using microdata on some 90 000 UK households. Separate equations are estimated for gas demand, electricity demand for households with a gas supply and electricity demand for those without. Price and income elasticities are presented; these show considerable variation with household characteristics.