The determinants of residential gas demand in Ireland

- Examines the determinants of residential gas demand using a panel analysis
- Investigates the impact of a gas demand management programme
- Weather is the most influential factor on residential gas demand.
- Socio-economic and dwelling characteristics impact gas demand.
- Demand side management stimuli reduce daily household gas use.

This paper examines the determinants of residential gas demand in Ireland using a micro-econometric analysis of the daily gas consumption panel data from Ireland's Smart Metering Gas Consumer Behavioural Trial. It also investigates the effectiveness of the demand side management stimuli that were tested during the Smart Metering Trial. The analysis is based on a sample of 1181 households over 539 days in the period from 1st December 2009 to 30th May 2011. The results provide evidence that weather, together with the structural characteristics of the dwellings and the socio-economic characteristics of the households, are significant factors in explaining residential gas demand. More specifically, weather is found to be the most influential factor on household's daily gas consumption. Finally, the demand side management stimuli employed in the Smart Metering Trial were found to reduce daily household gas use on average.