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Residential energy efficiency: Turkish case

Kartal, Aysun
This study aims to analyze residential electricity demand of Turkey between 2008 and 2015, provide relative efficiency scores of provinces in electricity use and reveal the determinants of (in)efficiency through stochastic frontier approach. Empirical results indicate that having higher income, inhabiting in densely populated provinces and living at detached houses result in increasing electricity consumption at the residential sector. On the other hand, as household size increases, electricity consumption per capita decreases. The findings also point out that Turkish households do not use electricity for the purpose of heating and cooling in general. Nonetheless, prosperous provinces use electricity for cooling at high temperatures. Based on the estimated efficiency scores, 8-year mean energy efficiency of Turkey is found to be approximately 0.83. This suggests that on average Turkey could have used 17% less electricity to produce the same amount of energy services between 2008 and 2015. In other words, Turkish households have an average electricity saving potential of 17% in the study period. The results of the inefficiency effects equation suggest that being well-educated of women and being married have a positive impact on improving residential efficiency. On the other hand, provinces located in the coastal area and those with higher loss-illegal electricity use rates are more inefficient in electricity use. Furthermore, the findings of the study imply that inefficient use of electricity at the residential sector has not declined over time. This can be evaluated such that the efficiency policies implemented by the authorities after 2007 did not have a significant impact on improving efficiency in residential electricity use. Since our study is the first one that analyzes electricity consumption and efficiency at the provincial level based on frontier analysis, it can shed light on the consecutive studies of regional development and energy efficiency.