ABSTRACT

The purpose of this paper is to identify the main drivers of household electricity consumption by income levels in Mexico. This chapter applies a quantile regression model to the 2016 Household Income and Expenditure Survey (ENIGH). The main results suggest that household electricity consumption is more elastic to changes in economic factors (income and electricity price) at low-income households than at high-income households. Socio-demographic factors do not have a wide effect on household electricity consumption; however, dwelling units and types of equipment have varying effects, suggesting that saturation of appliances is an important driver of energy consumption at high-income levels. This last result opens alternatives to manage energy consumption at high-income household levels within the framework of energy justice.