ECONOMIES OF SCALE IN ENERGY USE IN ADULT-ONLY HOUSEHOLDS

The residential sector is responsible for 18% of Australia's primary energy use; thus improved knowledge about household energy use is vital to future energy management. This study examines economies of scale in energy use and expenditure among adult-only households and across three adult-only household types. Significant economies of scale are found in all cases. Small households suffer a double penalty of greater per capita energy use and higher charge per unit of energy, with older households the most affected. The trend towards smaller average household size means that economies of scale ave continually being lost, offsetting gains in energy efficiency achieved through other means.