From natural gas to electric appliances: Energy use and emissions implications in Australian homes

Does variation in household vulnerability influence the effects of switching to new energyefficient
electrical appliances in the home? Using the Australian Capital Territory (ACT)
Energy Efficiency Improvement Scheme (EEIS) as a case study, this paper examines
impacts on energy consumption and greenhouse gas emissions from replacing natural
gas heaters and hot water systems with more energy-efficient electric alternatives. To do
so we use quarterly billing data over 2015–2020 for a sample of residential customers of
the ACT’s largest energy retailer, ActewAGL. Based on fixed effects panel regressions,
we find that the electric replacements led to large decreases in residential natural gas
consumption and smaller increases in consumption of electricity from the grid in energy
content terms. Reductions in natural gas use from switching to electric hot water heaters
were particularly large for the more vulnerable households in the scheme. The emissions
effects depend on the emissions factor applied for grid electricity and underline the key
role that residential electrification can play in decarbonization efforts if electricity is from
low-emission sources.