Household electricity and gas consumption for heating homes

Energy consumption has been drastically changed because of energy source depletion, price fluctuations, development and penetration of alternative energy sources, and government policies. Household energy sources are interrelated, and energy price and household characteristics, such as income level and dwelling size, affect the usage. To supply energy consistently and achieve a balance between production and consumption, stakeholders must understand consumer energy-consumption behavior. Therefore, this study identifies household heating energy usage patterns and the substitutive and/or complementary relationships between electricity and gas. Based on a multiple discrete-continuous extreme value model, household utility structure is identified from data on gas-heating usage. Results show greater utility and the smallest satiation values for gas boilers than for electric heaters and electric heating beds. The effects of consumer socioeconomic and environmental characteristics on the choice of heating energy sources were analyzed. Also, for further comparison, the respondents were split into high and low categories for income, heating degree days, dwelling size, and gas usage. Gas was found to be the most economical heating choice for households.