Consumer preference changes and environmental consciousness

摘要

In this paper, we analyze consumer demand for goods and specifically for energy goods of Italian households. We find precise and significant estimates of expenditure elasticity values of own and cross price elasticity values both conditional and unconditional. We estimate a significant habit formation component in the preference structure. We interpret this as an indication that there is an environmental consciousness n the long run preferences changes of Italian households. In this way, we are able to disentangle the long run changes in energy consumption into two components: one is due to price effects and the other is due to preference modifications, in consequence of a learning process. In conclusion, our results offer some quantitative guidance for policy-makers to tackle the issue of energy saving and sustainable growth, combining energy taxation and public education strategies. In fact, if consumers change their attitude towards energy in response to both price and learning, an efficient policy strategy should use both instruments, namely prices and education, to achieve a comprehensive sustainable policy action.