Analyzing Household Drivers of Residential Electricity Consumption in Mexico

Abstract

In this study, we analyze the drivers of household appliance saturation in Mexico in order to support the ongoing development of a computer-based model for long-term projections of residential electricity consumption. Our findings inform future decisions regarding energy efficiency policies and capacity expansion plans of the electric power sector. With the most carbon-intensive electricity grid in Latin America, a growing population, and a growing energy-intensive middle class, Mexico has set goals to reduce energy consumption by 30% in their residential sector by 2030. In this project, we analyze 2008-2018 data from Mexico’s National Survey of Household Income and Expenditure (ENIGH) to investigate how household characteristics have influenced the adoption of various types of HVAC, lightbulbs, televisions, washing machines, and other household appliances. Additionally, we analyze how regional and climatic differences have especially affected heating and cooling technologies. Finally, we review electricity policies in Mexico to explore their effects on appliance adoption and make recommendations for future policies. Our findings indicate that, although the saturation of each appliance is influenced to varying degrees by different factors, socioeconomic status was a common significant factor across all appliances. The country could enhance its appliance adoption and replacement programs catered towards low income communities, enforce stricter energy efficiency standards at a faster pace, and continue collecting detailed data on household energy use.