Potential for energy savings in Norwegian households: Effects of energy policies on consumption

We divide the project in two parts: The first part is econometric analyses of household energy demand based on micro data. We will study the individual demand responses and the households' response to introduction of time-differentiated tariffs. We will a lso study the distribution of household electricity consumption on different end-uses and how the type of data (hourly vs. annual data and cross section vs. panel data) affect the estimated demand. The second part analyses the aggregation of individual behavior to an aggregate demand response where we will conduct tests for potential problems with aggregation of individual behavior. As a method for aggregation, we will use a micro simulation model based on econometrically estimated demand functions for electricity. The micro simulation model will be modified and used to quantify the driving forces of household electricity consumption and simulate possible scenarios for future development.