Energy Journal, Vol.28, No.2, 35-54, 2007
Habit formation and consumption of energy for heating: Evidence from a panel of Danish households
In this paper we ask if consumption of energy for space heating by households is habit forming. A model of intertemporal consumption allocation allowing for habit-forming preferences is estimated on a register-based panel data set with high quality information about consumption of natural gas for a sample of Danish households. Results indicate that preferences are weakly habit forming.