A Model of Residential Electricity Consumption.

Morton B. Berman, Morlie Hammer Levin

Expert InsightsPublished 1973

Analyzes the impact of residential electricity price (or tax) increases on different income classes. A household electricity consumption function is postulated and fitted to a 1970-1971 sample of households in 55 Los Angeles census tracts, ranging from $4000 to $30,000 yearly income. Electricity consumption was found to increase exponentially with respect to income. Investigation of effects by income group showed that the 31 percent under $5000 consume 17 percent of the electricity. The 21 percent over $15,000, consuming 41 percent, when faced with large price increases can reduce total costs by improving insulation, switching to gas, substituting fluorescent lighting, etc., while the low income groups do not gain substantially from these measures. Estimates for 2000, when L.A. population has increased 50 percent and incomes risen, show that doubling the relative cost of electricity would cause 53 percent decrease in average consumption. Total increase over today would be 70 percent rather than 260 percent. If all families under $5000 income (1970) were exempted or reimbursed, total consumption would increase 80 percent rather than 70 percent. 41 pp. Ref.

Document Details

  • Copyright: RAND Corporation
  • Availability: Web Only
  • Year: 1973
  • Pages: 41
  • Document Number: P-5063

Citation

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Berman, Morton B. and Morlie Hammer Levin, A Model of Residential Electricity Consumption. Santa Monica, CA: RAND Corporation, 1973. https://www.rand.org/pubs/papers/P5063.html.
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