Report on energy efficient behaviour and the underlying processes

In this new PENNY report we empirically analyse the level of efficiency in the use of electricity for a sample of households in three different European countries, using a stochastic frontier approach. We also test if the level of energy-related financial literacy plays a role in explaining the level of electricity consumption and the level of the frontier function.

We find that European households could save roughly 28-30% of their energy usage by correcting inefficiencies. We also find that the level of energy-related financial literacy seems to play an important role in explaining the level of electricity consumption and the level of the frontier function.

Read the report