Cover: Regional Differences in the Price-Elasticity of Demand For Energy

Regional Differences in the Price-Elasticity of Demand For Energy

Published Nov 1, 2005

by Mark A. Bernstein, James Griffin

Download eBook for Free

Full Document

FormatFile SizeNotes
PDF file 1.6 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Summary Only

FormatFile SizeNotes
PDF file 0.1 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

The Department of Energy has a series of programs intended to spur development and adoption of energy-efficient technologies. This report examines how trends in the energy market may vary at the state and regional levels, and how price-elasticity of demand (a measure of how demand responds to price), varies at the national, regional, state, and utility levels. To determine if regional, state, or sub-state characteristics could affect the size of the impact of energy-efficient technologies on energy prices, supply, and consumption, it is necessary to examine how individual factors-such as climate, supply constraints, energy costs, and demand for natural gas-might affect the extent of this impact. Three energy-demand components are addressed in this report: electricity use in the residential sector, natural gas use in the residential sector, and electricity use in the commercial sector. The goal of this research is to determine whether state- and regional-level differences were significant enough to recommend to the Department of Energy the disaggregation of data by state or region when estimating the potential benefits of energy-efficient technologies.

The research described in this report was conducted under the auspices of the Environment, Energy, and Economic Development Program (EEED) within RAND Infrastructure, Safety, and Environment (ISE), a division of the RAND Corporation, for the National Renewable Energy Laboratory.

This report is part of the RAND technical report series. RAND technical reports may include research findings on a specific topic that is limited in scope or intended for a narrow audience; present discussions of the methodology employed in research; provide literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND 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.