Determination of Household Electricity Expenditures Using Quantile Regression with Kennedy Approach

Abstract

The electrical energy expenditure of households in Turkey has been increasing over the years, and households account for one-fifth of the overall electrical energy consumption. For this reason, it is of vital importance to determine the factors that affect household electricity expenditure, reveal consumption patterns for different consumer groups, and propose suggestions for the efficient use of electrical energy. In the present study, determinants of household electricity expenditure were analyzed with the quantile regression approach using the Household Budget Survey published by the Turkish Statistical Institute. In conclusion, it was determined that demographic, economic, and residential factors had significant effects on the electricity expenditures of households. The present study will serve as a guide for policymakers and decision-makers in developing strategies and conducting studies toward reducing the electricity expenditures of households, which is an important factor for energy usage.