Norwegian residential electricity demand—a microeconomic assessment of the growth from 1976 to 1993

The Norwegian residential electricity consumption increased by an average of 3% annually during the period 1976–1993. Political signals indicate that the growth in Norwegian residential energy consumption should be reduced, and that it may be necessary to increase energy taxes. Based on data for the sample of households from the annual consumer expenditure survey, we study factors that are of importance explaining the growth in Norwegian residential electricity demand during this period. Nearly half of the growth is due to an increase in the number of households, while the rest reflects an increase in average consumption per household. The increase in average consumption per household is due to an increasing number of households possessing electric household appliances such as dryers and dishwashers, an increase in real disposable household income and in the floor space of dwellings.