Contents

• Introduction 2
• Trend of Household energy consumption in Malaysia 2
• Factors influencing households’ decision in sources of energy consumed 2
• Changes to Indifference Curve 3
• Changes to Budget Constraint 4
• Factors affecting households’ decision in the choice of energy efficient appliances 4
• Changes to Indifference Curve 5
• Changes to Budget Constraint 5
• Government Policies 6
• The use of less carbon intensive form of energy 6
• Changes to Indifference Curve 7
• Changes to Budget Constraint 7
• The use of more energy efficient household appliances 7
• Changes to Indifference Curve 7
• Changes to Budget Constraints 8
• Conclusion 8
• References 9

Description

Household energy consumption is one of the primary contributors to overall energy consumption around the world. Energy efficient appliances and government policies such as subsidized cleaner energy would contribute to the cleaner environment and help reduce carbon footprints as well as overall energy consumption in households. This short essay discusses the consumer choice of energy efficient appliances with the help of indifference curve analysis.