Abstract

This article analyses the status and trends of the European Union (EU) residential energy consumption in light of the energy consumption targets set by the EU 2020 and 2030 energy and climate strategies. It assesses the energy efficiency progress from 2000 to 2016, using the official Eurostat data. In 2016, the residential energy consumption amounted to 25.71% of the EU’s final energy consumption, representing the second largest consuming sector after transport. Consumption-related data are discussed together with data on some main energy efficiency policies and energy consumption determinants, such as economic and population growth, weather conditions, and household and building characteristics. Indicators are identified to show the impact of specific determinants on energy consumption and a new indicator is proposed, drawing a closer link between energy trends and policy and technological changes in the sector. The analysis of these determinants highlights the complex dynamics behind the demand of energy in the residential sector. Decomposition analysis is carried out using the Logarithmic Mean Divisia Index technique to provide a more complete picture of the impact of various determinants (population, wealth, intensity, and weather) on the latest EU-28 residential energy consumption trends. The article provides a better understanding of the EU residential energy consumption, its drivers, the impact of current policies, and recommendations on future policies.

Highlights

  • Introduction and Policy BackgroundGlobal residential energy demand has steadily increased over the past decades. [1,2].A generalized higher level of basic comfort in the last years has translated to increased consumption in the sector

  • In 2016, the main component of primary energy consumption is the final energy consumption that accounts for 71.5% of primary energy; followed by transformation losses (21.4%) and consumption in the energy sector (5.2%)

  • 2000–2016, with a focus on the residential sector. This analysis aimed to give new insights into the impact and effectiveness of energy efficiency policies implemented in the European Union (EU) for this sector

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Summary

Introduction

Global residential energy demand has steadily increased over the past decades. A generalized higher level of basic comfort in the last years has translated to increased consumption in the sector. New services, and new and larger appliances and equipment, including the direct rebound effect, have boosted the demand for energy [3]. European countries experienced an increase in the energy efficiency of residential appliances, ICT (Information, Communication and Technology), lighting, and heating and cooling equipment mainly due to the implementation of energy efficiency policies [4]. Changes in consumer behaviour, socio-economic characteristics, and policy interventions play an interconnected and key role in reducing residential energy consumption growth and in achieving energy savings.

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