Residential Energy Use

An Econometric Analysis

by Kent P. Anderson


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Fifty-state data for 1960 and 1970 are used to estimate equations for predicting (a) household stocks of energy using devices including space heating units, ranges, air conditioners, clothes washers and dryers, water heaters, food freezers, and television sets by fuel or type of unit, where relevant, and (b) residential consumption of utility gas and electricity. Both static and dynamic formulations are tried, the results being little affected by the choice. The stock-equation results are used to decompose the mean own-price elasticities of consumption for gas and electricity into a fuel-choice effect and a usage-rate or conservation effect, the latter being about one-third of the total effect for both energy types. The stock-equation results are also used to show that others' estimates of the cross-price elasticities for gas and electricity consumption as well as the author's own are likely to be incorrect because of specification error in the energy consumption equations.

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