Energy consumption and urban sprawl: Evidence for the Spanish case

Abstract

Residential electricity consumption constitutes one of the largest sources of Spanish final energy demand. To improve electricity savings, policies oriented towards efficiency in residential consumption, such as replacement of appliances or the construction of nearly-zero energy buildings, have been suggested and implemented. However, the potential relevance of urban structural characteristics, such as the increase in detached houses in sprawling residential areas, has not often been considered. The aim of this research is to analyse the relevance of living in a detached house located in a dispersed urban area to household electricity consumption. Thus, an electricity consumption model is estimated by using household socioeconomic variables and including urban characteristics as its determinants, such us the level of urban agglomeration or whether families live in detached-sprawling homes. The model is estimated by using 2014 Household Budget Survey (HBS) microdata and applying Ordinary Least Squares (OLS) as well as quantile regressions (QR) as econometric procedures. Endogeneity problems are corrected by means of instrumental variables. The results confirm that living in a detached house significantly increases electricity consumption, whereas urban agglomerations have the opposite effect. Sprawl is occurring rapidly in Spanish cities, and according to our results, it could constitute a relevant source of increase in electricity demand in the following years.