The hourly income elasticity of electricity

- Income elasticities vary across hours.
- Higher household income is not only associated with higher levels of electricity consumption, but also higher peak demand.
- Hourly income elasticities are larger for villas than for flats, but do not differ across seasons.

Using a detailed data set on appliance-level electricity consumption at the hourly level, we provide the first estimates of hourly and end-use-specific income elasticities for electricity. Such estimates are informative about how consumption patterns in general, and peak demand in particular, will develop as households' income changes. We find that the income elasticities are highest during peak hours for kitchen and lighting, with point estimates of roughly 0.4, but insignificant for space heating.