Population agglomeration and residential energy consumption: evidence from Japan

Abstract

In the Japanese economy facing environmental restrictions, both the control of greenhouse gas emissions and the boost of regional economic growth are important policy issues. In this context, this study employs econometric methods to investigate whether population agglomeration, which is a potential source of economic growth, contributes to the reduction of energy consumption in the residential sector. The results of the analysis highlight that population agglomeration affects savings in energy consumption. Specifically, over the considered observation period, population agglomeration has saved energy consumption in large metropolitan areas. In contrast, in rural areas, population dispersion has had the opposite effect.