Variables determining total and electrical expenditure in Spanish households

Our aim is to discover the variables influencing total and electrical expenditure in Spanish households in the Survey of Family Budgets. Using a principal component analysis, a cluster analysis, and a stepwise regression analysis, we find that income-related variables are the most influential factor in determining total expenditure; however, dwelling size is the most influential factor in determining electricity expenditure. Regional location is the second most important factor for total household expenditure but not electricity expenditure. We find that electricity expenditure depends on the surface area of the house and the number of people in the household, as well as heating and hot water systems and building type. Energy savings will not only reduce household electricity costs, but will benefit the environment. In general, in a developed consumer society, the determining factors go beyond income and include other lifestyle aspects.