This paper studies the impact of demographic shifts, energy prices and climate factors on Italian households’ energy budget. The pattern of energy expenditure of Italian households is studied using the Italian Household Budget Survey. The expenditure for heating, private transport and electricity are jointly modelled and the relevant parameters are simulated under di?erent scenarios. According to this exercise, the ageing of the Italian population – coupled with the increase in energy prices and surface temperature – could reduce the share of energy-related expenditure by about 2 percentage points in the next few decades and increase its polarization. Energy policies should take  into consideration households’ characteristics and behaviour, and in turn the impact of this heterogeneity on the demand for energy.

This seminar has been jointly organized by FEEM and IEFE, Bocconi University.