Demographic Shifts, Household Energy Needs and Vulnerability

Abstract Structural changes in the population are bound to be intertwined with the energy transition in determining the evolution of household energy consumption. Most countries are characterized by shrinking total population, very fast ageing and smaller family size. These demographic shifts could enlarge the group of vulnerable individuals who are suffering for energy poverty. Being a single parent or living alone, having an increasing number of elderly or individuals with specific needs related to illness and disability in the family, significantly increases the chances of facing energy poverty. When studying the drivers of future energy demand, demographic shifts represent a crucial factor although they are usually overlooked in the estimated long-run projections of energy use which mainly takes into account only the population size. In this chapter, we summarize how demographic change is interlinked with energy transition with an analysis of the main issues related to changes in the composition and the age structure of the population and their effects on the future paths of energy consumption in Italy. Then we focus on the vulnerability of the elderly and on its main specific drivers as the affordability of energy expenditures and the energy efficiency of buildings and equipment. Moreover, we briefly look at the consequences of limited access to energy services on the social activities of the ageing population. Finally, price and income elasticity estimations add further evidence on the role of age and generation in household energy consumption. These findings are relevant in understanding how the expected structural demographic changes may affect the future trend of energy poverty.