Contribution of crude oil price to households’ budget: The weight of indirect energy use

We propose a new method to evaluate the burden of oil price on any set of goods and services, and apply it to French households. This method takes into account the contribution of indirect energy consumption, which constitutes typically one half of the energy used by a typical French household. It yields an average burden of 4.4% in 2006, with a higher relative burden for households with lower income, older members and rural dwelling.