Household Consumption Behavior Research Articles

Do “Little Emperors” Get More Than “Little Empresses”? Boy-Girl Gender Discrimination as Evidenced by Consumption Behavior of Chinese Households

The phenomenon of child gender discrimination is investigated and verified using online purchase data of children’s clothing in China.

Examination of Consumption Expenditure Distribution among NUTS-2 Regions in 2007-2018 with GINI Coefficient

In this study, the distribution of 12 main expenditure categories included in the consumer price index (CPI) among NUTS-2 (Nomenclature of Territorial Units for Statistics-2) regions is examined. The study covers the years 2007-2018. In the study, interregional consumption expenditure rates are identified with the Gini coefficient, which is a measure of inequality and the obtained consumption expenditure rates through the years are interpreted. The coefficients calculated for each expenditure category are important in terms of revealing the course of consumption behavior of households in Turkey over the years and reflecting the best and worst distribution at the NUTS-2 level. Findings regarding the expenditure categories show that the consumption behavior in Turkey in the relevant period is far from equal at the regional level. According to the findings, the expenditure category with the highest inequality at the NUTS-2 level is the food and non-alcoholic beverages category with an average Gini coefficient of 0.3031. The expenditure category with the highest equal distribution, on the other hand, is the education category with a Gini coefficient of 0.2307 according to the findings.

Clean energy choice and use by the urban households in India: Implications for sustainable energy for all

Despite rapid socioeconomic progress, households in developing countries face a severe challenge in accessing clean energy. More than one-third of the global population depends on biomass, dung cake, and firewood for cooking fuel, which are harmful to health and the environment. Thus, ensuring an adequate supply of non-polluting sources of fuel for households is crucial for protecting the environment and enhancing the well-being of people in developing nations. To provide affordable and non-polluting fuel for all by 2030, as per the Sustainable Development Goals of the United Nations, it is vital to understand the factors that influence the adoption of non-polluting fuels. Using information of urban households from NSSO 46th (1991–92), 63rd (2006–07), and 68th (2011–12) round surveys by the National Sample Survey Organization (NSSO), India, this study examines the factors influencing fuel choice and investigates the fuel consumption behavior of urban households. This study found that although reliance on firewood has been declining, a significant number of households continue to use it, and expenditure on firewood is more than 15% of the total energy expenditure of an urban family in India. Our econometric findings indicate that the schooling of the household head and spouse and economic status are the major factors in determining the choice of and reliance on clean or dirty fuels. Based on the findings, clean energy policies should target resource-poor households to guarantee non-polluting sources for all by 2030.

Determining Factors Influencing Household Consumption Behavior in Saudi Arabia

The objective of this study is to specify a model that analyzes the behavior of household consumption in Saudi Arabian having been through the literature on household saving in Saudi Arabia. It is to our understanding that there been very few empirical studies, devoted to analyze empirically the behavior of household consumption. This means that this study will be an important contribution in this area. After reviewing a number of consumption theories and some important field studies on household consumption in Saudi Arabia and some developing and developed countries, an empirical model was determined to analyze the behavior of household consumption in Saudi Arabia. This model contained several explanatory variables that were expected to have a strong influence on the behavior of household consumption. These variables are real gross domestic income (real GDI), inflation, and finally the demographic variable (population growth). The estimated model of this study revealed that the estimated model’s explanatory variables are statistically significant.

Determining Factors Influencing Household Consumption Behavior in Saudi Arabia

The objective of this study is to specify a model that analyzes the behavior of household consumption in Saudi Arabian having been through the literature on household saving in Saudi Arabia. It is to our understanding that there been very few empirical studies, devoted to analyze empirically the behavior of household consumption. This means that this study will be an important contribution in this area. After reviewing a number of consumption theories and some important field studies on household consumption in Saudi Arabia and some developing and developed countries, an empirical model was determined to analyze the behavior of household consumption in Saudi Arabia. This model contained several explanatory variables that were expected to have a strong influence on the behavior of household consumption. These variables are real gross domestic income (real GDI), inflation, and finally the demographic variable (population growth). The estimated model of this study revealed that the estimated model’s explanatory variables are statistically significant.

Household consumption characteristics and energy-related carbon emissions estimation at the community scale: A study of Zengcheng, China

In recent decades, great changes have taken place in residents’ lifestyle and consumption structure. Urban household consumption plays an increasingly significant role in promoting energy use and related carbon emissions. Communities are regarded as the basic part of city, and also units and cases where management methods and policies are most likely to be operated and implemented. In this paper, questionnaire surveys were administered to investigate the consumption characteristics of urban households at the community scale in Zengcheng. Based on statistical analysis, we assessed the consumption differences among the five selected communities. Meanwhile, the carbon emissions caused by household energy consumption (CEs-HE) were evaluated and the influencing factors were studied. The results showed that respondents from different communities had significant differences in their residential consumption, housing conditions, daily travel distance, public transport charge, household durable goods service life, monthly staple food consumption, and monthly energy consumption, respectively. The average CEs-HE of each household were 410.6 ​kg CO 2 per month. The Household demographic information, main expenditure items, housing conditions, daily travelling, family life habits and residents’ environmental awareness all had significant impacts on CEs-HE. The results supplied in this study could provide some valuable information for decision-makers to explore the road of urban sustainable development. • The energy consumption and carbon emissions caused by household consumption are getting harder to ignore. • The research based on the community scale can accurately reflect the existing problems of the residents’ consumption within a certain region. • There were significant differences in household consumption characteristics among different communities. • The household consumption behavior and environmental awareness had significant impacts on the household carbon emissions.

Household energy consumption behaviors in developing countries: A structural decomposition analysis for Brazil

Many studies have discussed the links between household income growth and energy consumption. However, the analysis of impacts on household consumption behavior and its effects on the energy sector has not yet been explored in significant depth for developing countries. Thus, this paper proposes an input-output structural decomposition analysis methodology for identifying the main determining factors for variations in energy consumption in a developing country, according to income class, energy source, and household consumption basket composition. The methodology was applied to analyze the repercussions of recent income growth in Brazil from 2002 to 2008. The structural decomposition analysis results showed an overall upsurge in per capita direct energy consumption, together with a significant increase in the energy embedded in goods and services consumed by Brazilian households. The methodology was applied to analyze the repercussions of recent income growth in Brazil from 2002 to 2008. The results showed that the distribution of energy consumption by income class accompanied the reduction of income inequality. Besides, the socioeconomic development process caused significant changes in household energy consumption patterns, such as increased electrification and access to more modern cooking sources, such as LPG, and public transport services for low-income families. Finally, the study recommends developing countries to use technical detailed structural models with a realistic representation of intersectoral relations and household behavior per income class, in order to improve their energy planning and policymaking focused on sustainable development.

Gasoline price reforms and household consumption behaviour: Evidence from household‐level survey data in Saudi Arabia

AbstractIn January 2016, as a measure of energy price reform, the government of Saudi Arabia implemented a 50 per cent nationwide increase in gasoline prices of both higher (octane 95) and lower (octane 91) grades. We utilised more than 1800 responses from a nationwide survey designed to study gasoline consumption preferences among residents of Saudi Arabia to investigate the impact of this price reform. Our analysis shows that the January 2016 price hike was responsible for more than 20 per cent drop, on average, in gasoline consumption among residents of the country who used the lower grade, octane 91‐type gasoline. However, users of octane 95 surveyed in the post‐price‐adjustment period consumed 15 per cent more gasoline than those who were surveyed in the pre‐adjustment period. Moreover, the estimated demand elasticity decreases with the level of education, while income level tends to be positively associated with higher consumption in the higher‐price period than in the lower‐price period.

Farm Producers' Household Consumption and Individual Risk Behavior after Natural Disasters

AbstractUnderstanding how farm household consumption responds to adverse income shocks can provide insight into household well-being and appropriate agricultural policy. Using a split-sample survey of Indiana specialty producers, where we randomly assign respondents to treatments that vary the size of a hypothetical income shock, we estimate the relationship between income loss and household consumption. Given that postdisaster producers' risk preferences are important for business decisions, we elicit producers' risk preferences. We find that food and miscellaneous expenses are the most sensitive to income losses. We also find evidence for decreasing absolute risk aversion among producers after the income loss shock.

An Adrift Community in Mainstream Bangladesh: Case of Tea Workers

This research was conducted to analyze the status of tea workers of selected areas of Bangladesh. Primary data were collected through direct interview and secondary data were also collected from different sources. A total of 100 tea workers were randomly selected from Ootterbhag and Indanugger tea estate of Moulvibazar. Descriptive statistics and functional analyses were employed to achieve the objectives of the research. Risk facing index, food security index, food consumption score were calculated and binary logistic regression were carried out to identify the factors affecting food security status. The study revealed that the life of tea workers in selected areas are vulnerable. Wages are not adequate to meet basic needs and the wage raises are not keeping pace with the cost of living. Considering 4.51 average family member the respondent family household is far below the international poverty line (1.90 US$). It was observed from the analysis that 52% sample respondents were illiterate. However, the maximum respondents also agreed that they faced various psychological, mechanical and biological hazards. Household calorie availability or consumption behavior was revealed by food consumption score, which exemplified that 49% respondents are in borderline food consumption pattern while 5% and 46% are in poor and acceptable level respectively. The overall average daily per capita calorie intake by tea workers was observed to be 2076.3996 kilo calorie, which is lower than the national average of Bangladesh. Only 35% household were food secure based on calorie intake. Household was food insecure if number of dependent persons in family increases; food secure with increase in household monthly income; and household food security decreases with increase in household size.

The Impact of Temporal Framing on the Marginal Propensity to Consume

We conducted a large-scale household survey in November 2020 to study how altering the time frame of a message (temporal framing) regarding an imminent positive income shock affects consumption plans. The income shock derives from the abolishment of the German solidarity surcharge on personal income taxes, effective in January 2021. We randomize across survey participants whether their extra disposable income is presented in Euros per month, Euros per year, or Euros per ten year-period. Our main findings are as follows: In General, we find our respondents’ intended Marginal Propensity to Consume (MPC) is 28.2%. Across all three treatments, the MPC is a positive function of age and being female while it is a negative function of the income increase’s size, self- control, and being unemployed. Temporal framing effects are statistically and economically highly significant as we find the monthly treatment groups’ average MPC 5.6 and 8.7 percentage points higher compared to the yearly and 10-yearly treatment groups. We will be able to analyze the real consumption behavior of households throughout 2021 based on re-surveying the participants as well as by using transaction-based bank data.

Household energy consumption and adaptation behavior during crisis: Evidence from Indian economic blockade on Nepal

This paper analyzes the energy consumption behavior of urban households in Nepal during the energy crisis induced by the unofficial Indian economic blockade in 2015. Our findings suggest that urban households have a smaller marginal utility attached to the consumption of one more unit of electricity relative to other dirty energy sources like firewood. The 2015 economic blockade had some deteriorating impacts on a household fuel choice as they were forced to degrade to firewood for cooking. However, to some extent, the blockade also seems to have acted as a push factor for some households towards cleaner sources like electricity largely due to the distrust in the supply of petroleum fuels. There is a variation in energy consumption behavior of households, which is explained by different demographic and socioeconomic attributes of the household. Households with a better educated head and those headed by a female are generally more amenable to cleaner fuels such as electricity. On the other hand, larger households and those residing outside the Kathmandu valley are less likely to make the jump to cleaner fuels. House ownership and number of rooms used were found to have no significant association with the energy consumption behavior of households residing in urban Nepal.

Not just a work permit: EU citizenship and the consumption behaviour of documented and undocumented immigrants

AbstractThis paper explores the impact of the 2007 European Union enlargement on the consumption behaviour of immigrant households. Using data from a unique Italian survey and a difference‐in‐differences approach, we find that the enlargement induced a significant consumption increase for the immigrant households from new member states both in the short and in the medium run. This enlargement effect cannot be attributed to the mere legalization as it concerns both undocumented and documented immigrants, albeit through different channels. Detailed information on immigrants’ legal status (undocumented/documented) and sector of employment (informal/formal) allows us to shed light on the exact mechanisms. Following the enlargement, previously undocumented immigrants experienced an increase in the labour income by moving from the informal towards the formal economy, whereas immigrants who were already working legally in Italy benefited from the increased probability of getting a permanent contract. Enhanced employment stability in turn reduced the uncertainty about future labour income leading to an increase in documented immigrants’ consumption expenditure.

Urban household consumption in China: Price, income, and demographic effects

AbstractGiven the government’s goals to restructure the economy away from investment and exports to consumption and to reduce inequality, it is important to have a good understanding of China’s household consumption behavior and to obtain a good measure of consumption adjusted for price differences across regions. We estimate a consumption function that is flexible and distinguishes between different household types such as size and age of head. We develop detailed price data by region, including rental equivalents for owner‐occupied housing. This provides us the estimates of income and price elasticities of different consumption bundles that should be useful for analyzing public policies. We find distinct elasticities for residents of large and small cities. For all urban households the income elasticity for food is about 0.7–0.8, housing is 0.8–0.9, and services is 1.4–1.5. The price elasticity for food and services is about 0.5 and 0.8, respectively.

Threshold effects of housing affordability and financial development on the house price‐consumption nexus

AbstractThe study explores the asymmetric effect of housing and financial wealth on household consumption behaviour using panel data from 24 OECD countries, spanning the period 2000–2016 by employing a financial development (FD) index (proxy for financial deepening) and the house price‐to‐income (HPI) ratio (proxy for housing affordability) through a threshold empirical framework. The analysis tests certain hypotheses, such as: (i) the housing wealth effect on consumption is stronger than its financial counterpart, (ii) overall wealth effects increase (decrease) during bubble (post bubble) periods, (iii) the higher level of financial development and the lower level of housing affordability ratio both result in stronger wealth effects, (iv) increasing wealth effects show a bubble formation. The results suggest that housing wealth has generally a greater positive effect on consumption. The effect of housing and financial wealth on consumption increases, depending on higher financial development and declining housing affordability. The evidence also suggests that the impact of housing and stock market wealth has increased during the dot.com and housing bubble periods.

Household Energy Consumption in Nigeria: A Review on the Applicability of the Energy Ladder Model

Household energy consumption dynamics in developing countries is often conceptualized through the Energy ladder model and assumes that with increasing income, householders will have a preference to cleaner energy. This paper reviewed various energy sources for household consumption and examines the implications of their dependence on traditional energy sources as well as the energy ladder model as a concept widely used by scholars in describing the role of income in determining energy use and choices. It further explains the consumption behaviour of households in relation to the major assumptions of the model. The paper posits that the dependence on energy sources at the lowest rung of the energy ladder by most households in Nigeria is accentuated by rising poverty level consistent with the energy ladder hypothesis but disagrees with the notion of complete fuel substitution given that most households tend to have a mix of energy sources for their activities It recommends that government and other stakeholders should formulate policies that will foster the use of modern energy sources with a view to mitigating the environmental and health externalities of traditional energy use as well as improving the quality of human lives.
 Keywords: Households, energy consumption, energy ladder model, income

Consumer Confidence and Consumer Spending in Brazil: A Nonlinear Autoregressive Distributed Lag Model Analysis

The study explores the relationship between consumer confidence, household private consumer expenditure and other related macroeconomic financial variables for Brazil, a major, upper middle, income, Latin American country. It is widely discussed in the literature that the consumer confidence is an initial guide to the future behaviour of the economy based on the consumption path. Thus, a rise in the confidence of the consumer would lead to rising household consumption behaviour, which would percolate to accelerate economic growth. The study uses the nonlinear autoregressive distributed lag model (NARDL) to measure the effects of changes in consumer sentiment on private consumer spending, taking into consideration the significance of other financial variables, namely the rate of interest, stock market index, the exchange rate, inflation and unemployment trends. The study employs monthly data from the 4th month of 1995 to the 10th month of 2018. The bounds test of the NARDL suggests the presence of a cointegrating relationship among the variables. The model estimation affirms the presence of asymmetries in the behaviour of the major explanatory variables. In the short run, there are both positive and negative asymmetric impacts of consumer confidence index (CCI) on consumer expenditure, while the rate of interest has only negative asymmetries. In the long run, unemployment changes, stock market fluctuations, interest rate variation and alterations in the CCI shape the behaviour of consumer spending at the household level in Brazil. So, the consumers are able to perceive the signalling of the future behaviour of the market and contribute through consumption spending. JEL: C22, D12, E21, O54

PENGARUH TINGKAT PENDIDIKAN, PENDAPATAN DAN RELIGIUSITAS TERHADAP PERILAKU KONSUMSI RUMAH TANGGA MUSLIM DI SURABAYA (KAIDAH KONSUMSI ISLAMI MENURUT AL-HARITSI)

This study aims to determine the influences of level of education, income and religiosity on consumption behavior of Muslim households in Surabaya. This study uses quantitative analysis with multiple linear regression analysis. Primary data collection in this study uses a questionnaire. The sample of this research are 44 muslim households, especially fathers or housewives who were Muslim and were citizens who lived in Surabaya. Based on the results of the study indicate that level of education consisting of elementary school to college level partially has a significant effect on the consumption behavior of Muslim households in Surabaya. Income partially has no significant effect on consumption behavior of Muslim households in Surabaya. Religiosity consisting of dimensions of faith, knowledge of Islam, intensity of ritual worship, religious experience, practice of Islamic teachings partially have a significant effect on consumption behavior of Muslim households in Surabaya. Level of Education, income and religiosity together (simultaneously) have a significant effect on the consumption behavior of Muslim households in Surabaya.Keywords: Income, Religiosity, Level of Education, Consumption Behavior, Muslim Household

Income pattern and consumption behavior of farm households in Punjab

An enquiry into the income pattern and consumption behavior of agricultural households of Punjab was conducted. The data was collected from three agro-climatic zones of Punjab in which 50 farmers were selected randomly from each zone making total sample of 150 farmers. The results revealed that income, consumption and savings increase with increase in farm size. The sources of farm household income were crops (78.08%), livestock (13.00%) and non-farm sources (8.92%). The share of farm income in the total income in zone I, II and III was 70.08, 76.33 and 87.47 per cent, respectively. Average consumption expenditure per household was Rs. 166124, with major share of food items (52.61%). The annual availability of post consumption funds was least (34.19%) on marginal farms and highest (87.88%) on large farms. These funds were highest (Rs. 547533/household) in zone II and least (Rs. 390351/household) in zone III. Consumption to income ratio (C:I ratio) for farm households was 1:4 while for marginal and large farm households was 1:1.5 and 1:8, respectively, which highlights vulnerability of marginal farmers. The study also highlights the prevalence of high income inequality among farm households in Punjab agriculture. The Gini coefficient came out to be 0.49. It is suggested that the government should ensure policies which support marginal and small farmers in livestock sector. It was also suggested to promote skill development centers which can help family members of farm households to work in non-farm sector.

Ecological Environments of Tropical and Subtropical Regions in China

China’s tropical and subtropical zones have high levels of economic development and are densely populated. However, the economic development and population growth have exacerbated ecological problems. This special issue provides a platform for sharing the latest studies on the ecological environments in the tropical and subtropical regions of China. The studies in this issue can be divided into three categories: (a) energy-saving and emission reduction, environmental efficiency, and carbon emissions; (b) relationship between economic development and the ecological environment; and (c) environmental protection services, public satisfaction, and corporate environmental obligations. In this special issue, some studies have adopted and expanded new methods in the field of ecological environment, and some studies have provided empirical evidence for meteorological disaster theory and household consumption behavior theory. In addition, the conclusions of some studies provide important recommendations to the government for policy formulation regarding the ecological environment, improvement of environmental protection services, and economic development.