A Methodology for Projecting the Electrical Energy Demand of the Manufacturing Sector in California

by W. E. Mooz, C. C. Mow


Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback75 pages $25.00 $20.00 20% Web Discount

This methodology is based on the premise that the electricity used in manufacturing is equal to the manufacturing output (in terms of dollar value added, $VA) times the amount of electricity per unit of manufacturing output (in terms of electrical energy intensiveness, i.e., electricity required per $VA) times a price adjustment factor, which permits analysis of the effect of future changes in the relative prices of electricity and gas. The methodology is applied to each of 20 discrete industries in California identified by the Standard Industrial Classification system. The energy intensiveness values are determined by projection of past trends for each of the 20 industries. The results indicate that current pricing policies encourage the substitution of electrical energy for other forms, including human labor, and that increases in the price of electricity in California relative to gas and electricity prices in other states would have little immediate effect on the composition of industry in California. (See also R-995, R-1106, R-1107.)

This report is part of the RAND Corporation Report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/research-integrity.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.