Cover: Recent Research on Residential Consumption of Electricity.

Recent Research on Residential Consumption of Electricity.

Published 1976

by Ragnhild Sohlberg Mowill

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Electricity consumption by households was studied using 800 cross-sectional observations in Los Angeles County over 24 months. Also included were appliance stock data and actual temperature observations from six divergent climate zones. The study used the marginal price from one of six actual electricity price schedules faced by consumers. In addition, it incorporated a measure of the income effect or "lump sum" charge associated with the monthly customer charge and the area under the tariff schedule up to the block where consumption is observed. It was found that the marginal price, the income of the household, the appliance stock, and the weather are important factors in influencing residential consumption. Policy implications are that these factors should be taken into consideration in load forecasts of utilities. Feedback effects from price changes should be taken into consideration in rate hearings, as should estimates of distributional consequences of price changes. 9 pp.

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