Transaction Costs and their Impact on Energy Demand Behaviour

  • Erich Unterwurzacher
  • Franz Wirl
Conference paper
Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 332)


The very recent trends in energy demand are incompatible with empirically fitted price elasticities. Different reasons are conceivable to explain this behaviour — technological progress, public policy etc. This paper argues that transaction costs associated with investment decisions of households — for energy conservation and/or fuel substitution — may have an significant impact. This in turn can explain — at least partially and for some sectors of demand (residential) — the recent energy pattern. The paper provides a theoretical discussion of these aspects and complementary, some empirical examples.


Transaction Cost Energy Demand Energy Price Fuel Price Indoor Temperature 
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Copyright information

© Springer-Verlag New York, Inc. 1989

Authors and Affiliations

  • Erich Unterwurzacher
    • 1
  • Franz Wirl
    • 2
  1. 1.International Energy AgencyOECDParisFrance
  2. 2.Institute of Energy EconomicsTechnical University of ViennaWienAustria

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