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Energy price in Ukraine



The research work on the theme of residential energy consumption and efficiency is nicely illustrated with the case of electricity in Ukraine.

Since the outbreak of the recent border conflict with Russia, this post-communist country saw a sudden energy price escalation. Households reacted to it by adopting different behaviour towards energy.

How has electricity consumption evolved before, during and after the increase in the price? Did households adopt energy efficiency measures, by benefiting from the subsidy program of the government? These questions have been tacked with an econometric modelling of quantitative data.

First, an estimate has been made on the association between adoption of energy-saving measures, on the one hand, and energy prices, public benefits, socio-demographic characteristics of family and structural characteristics of the dwelling, on the other hand.

Second, another estimate has been made on the demand for electricity and gas, either separately or jointly, with the propensity of households to insulate their home. Examples of energy saving measures are cavity wall insulation, attic or roof insulation, installed double-glazed windows, etc.

The results are significant to determine what drives household investments in energy efficiency, whether it is the increase in the energy price or the government program and subsidies.

Read further

Alberini, Anna, Olha Khymych, Milan Ščasný (2017). "Response to extreme energy price changes: evidence from Ukraine." Center of Economic Research at ETH Zurich, Working Paper 17/280.