Sources of inequality in household electricity consumption: evidence from Taiwan

This study examined the inequality of household electricity consumption in Taiwan over 1981-2017. The concentration index results indicated that richer households consume more electricity use per capita than poorer households, while the Kakwani index results revealed that the regressivity of electricity expenditure with respect to income distribution gradually intensified. Household size, household income, and air conditioner ownership are the most important sources of the inequality in electricity use. The inequality in electricity use concentrated among the high-income households decreased due to the declining income elasticity, the pro-rich distribution of household size, and increasing prevalence of household appliances. The distribution of household size across the income groups had changed. These results imply that the electricity tariff structures should take household size into consideration. It is important to develop identification approaches, integrating information about the characteristics of households and their occupants, so as to support utilities identify and classify the clients.