Examining the Demand-Pull Factors of Household Electricity Consumption in Delhi

Abstract

The paper explores the determinants of household electricity demand by investigating the stock of electrical appliances owned by households in Delhi. Through regression analysis, the study aims to identify the key factors influencing the accumulation of durable energy-using appliances within households. A questionnaire-based survey was conducted among 395 households in Delhi, selected through stratified random sampling. The survey collected data on socio-demographic variables, lifestyle choices, and electricity usage habits to gain insights into the factors driving appliance ownership patterns. The regression results reveal several significant findings. Firstly, household income emerges as a critical determinant of the stock of electrical appliances, indicating that higher income levels are associated with a greater accumulation of appliances. This underscores the role of economic prosperity in facilitating the adoption of energy-using technologies within households. Furthermore, family size and house size also demonstrate a positive correlation with the stock of electrical appliances, suggesting that larger households and homes with more space tend to have a greater number of appliances. This finding underscores the importance of household composition and housing characteristics in shaping appliance ownership patterns. Interestingly, the place of residence also emerges as a significant factor influencing appliance ownership, highlighting potential differences in appliance penetration between urban and rural areas or across different localities within Delhi. Surprisingly, the education level of the household head does not appear to exert a significant influence on the stock of electrical appliances. This finding suggests that factors other than education, such as income and household size, play a more prominent role in determining appliance ownership patterns. The study contributes to our understanding of household electricity demand by elucidating the factors driving appliance ownership. By identifying key determinants such as income, family size, house size, and place of residence, policymakers and stakeholders can develop targeted interventions aimed at promoting energy-efficient appliance adoption and fostering sustainable electricity consumption practices. Moreover, the findings underscore the importance of considering socio-economic and demographic factors in designing effective energy policies and initiatives tailored to the diverse needs of households.