Looking beyond subsidies: Understanding the complexity of household energy consumption dynamics of Ecuador's main cities

Abstract

Energy consumption serves the vital purposes of meeting needs, producing goods, and ensuring comfort. Notably, Ecuador's residential sector plays a significant role in the overall energy system, accounting for 13.2 % of the total energy demand. This study delves into Quito and Guayaquil's urban residential energy demand, employing a Bottom-up approach and introducing eco-innovation as an innovative management strategy. It aims to examine disparities among household profiles regarding energy consumption and associated factors, identify relations that elucidate critical concepts such as energy expenditure and eco-innovation, and assess the extent to which eco-innovation facilitates responsible household energy consumption practices. Various factors driving energy consumption are identified, including socio-demographic features, housing arrangements, infrastructure, energy consumption patterns, and environmental awareness. Additionally, it explores cross-sectional factors such as energy costs, technological advances, cultural influences, and energy policies. Robust statistical analysis reveals significant differences between socioeconomic profiles, including ANOVA and the Tukey HSD posthoc test. Moreover, the Multiple Correspondence Analysis technique uncovers relationships between variables, shedding light on energy expenditure and eco-innovation related to household energy consumption. The findings underscore that high-income households predominantly benefit from energy subsidies, and the eco-innovation process varies based on socioeconomic profiles. This study fills a crucial gap in the literature on domestic energy consumption in urban settings like Ecuador, characterized by enduring energy subsidies. It offers a comprehensive model for understanding household behavior diversity and underscores the pivotal role of eco-innovation in fostering responsible energy consumption.