Consumption-Based Energy Footprints in Iceland: High and Equally Distributed

Abstract

With the urgent global need to limit warming to 2 °C as well as a localized need in our case study to address rising energy demand amid electrical and thermal network limitations, a critical examination of demand-side energy reductions and the concept of energy sufficiency is needed. This paper contributes to the sparse literature on bottom-up analysis by utilizing Iceland—a leader in renewable energy generation—as a case study to explore the socio-economic factors influencing energy footprints. Our findings reveal significant energy footprints across various consumption domains, particularly housing and mobility, influenced by income levels, urbanization, and lifestyle choices. The study highlights the paradox of a high renewable energy supply leading to potential misconceptions regarding abundant and low-cost energy, resulting in substantial energy consumption-related environmental impacts. Using detailed household consumption survey data, this research provides insights crucial for developing sustainable energy policies that not only target technological advancements but also address the need for a reduction in energy demand and a shift towards energy sufficiency. This work marks a contribution to the literature through the provision of a case study of low income inequality and high energy footprints in a highly renewable energy system context. Further, this work is useful for Icelandic and international policymakers to understand in such high-demand contexts which consumption domains would be most relevant for sufficiency policies. This comprehensive analysis opens pathways for future research to further explore the intersections of energy consumption, socio-economic factors, and well-being, offering a nuanced understanding necessary for crafting sufficiency and demand-side policies aimed at a sustainable energy future.