Sustainable energy consumption – Empirical evidence of a household in Poland

Abstract

There is an expected increase in the demand for electricity from households in European countries. The outcome of the growing proportion of renewable energy sources in the energy supply mix should result in improved customer awareness regarding their electricity usage. Additionally, they must assume a more proactive role in overseeing their electricity usage. Innovation and pollution management have become crucial catalysts for promoting sustainable economic development and environmental protection. This is a response to the increasing threats posed by climate change. This study addresses this existing research gap in sustainable energy consumption. The research aims to examine the advantages of replacing traditional sources of heating with renewable ones. The empirical case study of households in Poland serves as an illustration of the theoretical foundation. The purpose of the study entails the construction of a multi-equation econometric model describing the mechanisms of electricity consumption in a specific household. The model hypothesis indicates that the model should take the form of a system of interdependent equations. The following will be described: the monthly volume of electricity consumption, the cost of this energy payment (in PLN), and the price per one MWh in a given month. Monthly time series from September 2015 to June 2023 were used. The resulting time series amounted to a count of 94 statistical observations. The results in the form of a multi-level empirical econometric model indicate that the economic, environmental, and social benefits of using renewable sources of heating can make a significant contribution to reducing fossil fuel consumption and CO2 emissions. In the context of growing environmental awareness and the need to reduce greenhouse gas emissions, heat pumps are becoming an increasingly important element in the discussion of the future of heating. Their role in transforming the energy sector in the direction of sustainability is crucial.