Residential Demand for Electricity: Econometric Estimates for California and the United States.

by Kent P. Anderson


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Least-squares regression techniques are applied to a 50-state sample consisting of 1969 data and to a 1947-1969 sample for California to identify and assess the quantitative impacts of important residential electricity demand-determining factors. The 50-state regression results yield statistically significant evidence that residential demand is influenced by the cost of electricity, income, urbanism, climate, and size of household. Further estimation shows that the saturation of all-electric homes has an important influence on demand but that one must reject the hypothesis that variations in this saturation can account for all the influence exerted by energy costs and income on demand. It is found, however, that the saturation of all-electric homes is significantly related to energy costs and the average number of persons per household. The California results indicate that time-related factors other than energy costs and income accounted for a substantial portion of the growth in average demand per residential customer between 1947 and 1969. 55 pp. Ref.

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