Abstract
The primary objective of this thesis is to provide an analysis of the determinants of energy use in the household sector in Ireland. The study utilises a micro level data set, the Household Budget Survey (HBS) and three research themes are examined. The first comprises of an analysis of the possession of the stock of energy using equipment in the home. The second research area focuses on the estimation of the relationship between the amounts spent on energy by households, household income and characteristics of both the household and the dwelling. The third research area employs an alternative methodology which models the household’s decision to purchase an energy item as separate participation and consumption decisions. The thesis primary contributions include the utilisation of a wider range of econometric methodologies which have not been previously applied to Irish household data and the fact that a greater number of energy purchases are examined compared to previous research. In total eight energy expenditures are analysed, gas, electricity, oil, coal, turf, LPG, petrol and diesel and the relationship between purchases of these fuels, household and dwelling characteristics and household income is quantified. The research indicates that the reliance on oil and gas in the household sector may be difficult to change over the short term as much of energy consumption is driven the stock of energy using appliances in the home. A similar problem exists with regard to the level of private car use by households resulting in an over reliance on petrol and diesel. Adjusting household behaviour toward the use of renewable energies in both space heating and transport should therefore be a priority. Current polices should also incentivise the use of energy efficient appliances, homes and cars although more data collection is required to examine this facet of household energy use.