How does ageing population affect energy use? An OLG-GE application for Italy

"In this study we evaluate the impact of demographic change on energy use. The results are obtained from a calibrated overlapping generations general equilibrium model for Italy. Contrary to studies based on partial equilibrium regression models, or fixed price models that are unable to account for supply side effects, we found that a pronounced ageing population leads to a reduction in energy use, although in principle, the increase in the share of old people produces a shift in consumption towards a more energy intensive mix of goods and services."