Residential consumption of gas and electricity in the U.S.: The role of prices and income

Energy Economics

Volumn 33, Issue 5, 2011, Pages 870-881

  Alberini, Anna ^a,b,c   Gans, Will ^a   Velez Lopez, Daniel ^a  

^a UNIVERSITY OF MARYLAND   (United States)

^b ETH ZURICH   (Switzerland)

^c QUEEN'S UNIVERSITY BELFAST   (United Kingdom)

Author keywords

Dynamic panel data model; Partial adjustment model; Price elasticity of energy demand; Residential electricity and gas demand; Static model

Indexed keywords

ADJUSTMENT MODEL; DYNAMIC PANEL DATA; PRICE ELASTICITY; RESIDENTIAL ELECTRICITY; STATIC MODEL;

COSTS; ELASTICITY; ENERGY UTILIZATION; GASES; HEATING;

ELECTRICITY;

CONSUMPTION BEHAVIOR; CROSS SECTION; ELECTRICITY; ENERGY POLICY; METROPOLITAN AREA; NUMERICAL MODEL; PRICE DYNAMICS;

UNITED STATES;

EID: 80052147896     PISSN: 01409883     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.eneco.2011.01.015     Document Type: Article

References (54)

1. Alberini Anna, Filippini Massimo Response of residential electricity demand to price: the effect of measurement error," CEPE Working Paper 75, Centre for Energy Policy and Economics, ETH Zurich July available at. http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP75.pdf.
2. Alberini Anna, Gans Will, Velez-Lopez Daniel Residential consumption of gas and electricity in the U.S.: the role of prices and income, CEPE Working paper 77, Centre for Energy Policy and Economics, ETH Zurich November available at. http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP77.pdf.
3. Anderson T.W., Hsiao C. Formulation and estimation of dynamic models using panel data. Journal of Econometrics 1982, 18:67-82.
4. Arellano Manuel, Bond Stephen Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 1991, 58(2):277-297.
5. Baltagi B.H. Econometric Analysis of Panel Data 2001, Wiley and Sons, Chichester.
6. Basheda Gregory, et al. Why are electricity prices increasing? An industry-wide perspective. Report Prepared for the Edison Foundation 2006.
7. Bernard Jean-Thomas, Bolduc Denis, Yameogo Nadege-Desiree A pseudo-panel data model of household electricity demand. Resource and Energy Economics 2010, 33(1):315-325.
8. Bernstein Mark A., Griffin James Regional differences in price-elasticity of demand for energy. The Rand Corporation Technical Report 2005.
9. Black Dan, Kniesner Thomas On the measurement of job risk in hedonic wage models. Journal of Risk and Uncertainty 2003, 27(3):205-220.
10. Blundell R., Bond S. Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 1998, 87:115-143.
11. Borenstein Severin To What Electricity Price Do Consumers Respond?. Residential Demand Elasticity Under Increasing-Block Pricing, unpublished manuscript, University of California, Berkeley 2009.
12. Borenstein Severin Equity effects of increasing-block electricity pricing. CSEM Working paper 2008, 180. available at http://escholarship.org/uc/item/3sr1h8nc.
13. Burtless Gary, Hausman Jerry A. The effects of taxation on labor supply: evaluating the Gary income maintenance experiment. Journal of Political Economy 1978, 86:1101-1130.
14. Burtraw Dallas, et al. The effect on asset values of the allocation of carbon dioxide emission allowances. The Electricity Journal 2002, 15(5):51-62.
15. Bushnell James, Mansur Erin Consumption under noisy price signals: a study of electricity retail rate deregulation in San Diego. Journal of Industrial Economics 2005, 53(4):493-513.
16. Carlson J.Lon, Loomis David An assessment of the impact of deregulation on the relative price of electricity in Illinois. The Electricity Journal 2008, 21(6):60-70.
17. Dergiades Theologos, Tsoulfidis Lefteris Estimating residential demand for electricity in the United States, 1965-2006. Energy Economics 2008, 30:2722-2730.
18. Energy Information Agency Annual Energy Outlook accessed November 4, 2010. http://www.eia.doe.gov/oiaf/aeo/demand.html.
19. Fabrizio Kira, Rose Nancy, Wolfram Catherine Do markets reduce costs? Assessing the impact of regulatory restructuring on U.S. electric generation efficiency. American Economic Review 2007, 97(4):1250-1277.
20. Fell Harrison, Li Shanjun, Paul Anthony A new look at residential electricity demand using household expenditure data. Resources for the Future Discussion paper 10-57, Washington, DC, November 2010.
21. Fischer Carolyn Renewable portfolio standards: when do they lower energy prices?. The Energy Journal 2010, 31(1):101-120.
22. Frondel Manuel, et al. Emissions trading: impact on electricity prices and energy-intensive industries. Ruhr Economic Working Paper No. 81 2008.
23. Garcia-Cerrutti L.Miguel Estimating elasticities of residential energy demand from panel county data using dynamic random variables models with heteroskedastic and correlated error terms. Resource and Energy Economics 2000, 22:355-366.
24. Golove William H., Eto Joseph H. Market barriers to energy efficiency: a critical reappraisal of the rationale for public policies to promote energy efficiency. Lawrence Berkeley Laboratory Report 1996, UC, Berkeley.
25. Greene W.H. Econometric Analysis 2008, Pearson Prentice Hall, Upper Saddle River, NJ. Sixth Edition.
26. Haas Reinhard, Schipper Lee Residential energy demand in OECD-countries and the role of irreversible efficiency improvement. Energy Economics 1998, 20:421-442.
27. Hassett Kevin, Metcalf Gilbert Energy conservation investment: do consumers correctly discount the future?. Energy Journal 1993, 21(6):710-716.
28. Hewitt Julie, Hanemann W.Michael A discrete/continuous choice approach to residential water demand under block rate pricing. Land Economics 1995, 71(2):173-192.
29. Houthakker Hendrik S. Residential electricity revisited. Energy Journal 1980, 1(1):29-41.
30. Ito Koichiro Do consumers respond to marginal or average price? Evidence from nonlinear electricity pricing, draft paper, University of California, Berkeley available at. http://ecnr.berkeley.edu/vfs/PPs/Ito-Koi/web/JMP_Koichiro_Ito_UC_Berkeley_2010_1122.pdf.
31. Jaffe Adam B., Stavins Robert N. The energy efficiency gap. What does it mean?. Energy Policy 1994, 22(10):804-810.
32. Judson R.A., Owen A.L. Estimating dynamic panal data models: a guide for macroeconomists. Economic Letters 1999, 65:9-15.
33. Kamerschen David, Porter David The demand for residential, industrial and total electricity, 1973-1998. Energy Economics 2004, 26(1):87-100.
34. Kiviet J.F. On bias, inconsistency, and efficiency of various estimators in dynamic panel data models. Journal of Econometrics 1995, 68:53-78.
35. Leth-Petersen Soren, Togeby Mikael Demand for space heating in apartment blocks: measuring effects of policy measures aiming at reducing energy consumption. Energy Economics 2001, 23(4):387-403.
36. Liao Hue-Chi, Chang Tsai Feng Space-heating and water-heating demand of the aged in the U.S. Energy Economics 2002, 24(3):267-284.
37. Maddala G.S., Trost R.P., Li H., Joutz F. Estimation of short-run and long-run elasticities of energy demand from panel data using shrinkage estimators. Journal of Business & Economic Statistics 1997, 15(1):90-100.
38. McFadden Daniel, Puig C., Kirschner D. Determinants of the long-run demand for electricity. Proceedings of the American Statistical Association, Business and Economics Section, Part I 1978, 72:109-113.
39. Meier Helena, Rehdanz Katrin Determinants of residential space heating expenditures in Great Britain. Energy Economics 2010, 32:949-959.
40. Metcalf Gilbert, Hassett Kevin A. Measuring the energy savings from home improvement investments: evidence from monthly billing data. The Review of Economics and Statistics 1999, 81(3):516-528.
41. Moulton Brent R. An illustration of a pitfall in estimating the effects of aggregate variables on micro units. The Review of Economics and Statistics 1990, 72(2):334-338.
42. Nesbakken Runa Price sensitivity of residential energy consumption in Norway. Energy Economics 1999, 21:493-515.
43. Paul A.C., Myers E.C., Palmer K.L. A Partial Adjustment Model of US Electricity Demand by Region, Season, and Sector 2009, RFF Working Paper DP 08-50, Washington, DC.
44. Poyer David A., Williams Martin Residential energy demand: additional empirical evidence by minority household type. Energy Economics 1993, 15(2):93-100.
45. Quigley John M., Rubinfeld Daniel L. Unobservables in consumer choice: residential energy and the demand for comfort. The Review of Economics and Statistics 1989, 71(3):416-425.
46. Rehdanz Katrin Determinants of residential space heating expenditures in Germany. Energy Economics 2007, 29. 267-182.
47. Reiss Peter C., White Matthew W. Household electricity demand, revisited. Review of Economic Studies 2005, 72:853-858.
48. Reiss Peter C., White Matthew W. What changes energy consumption? Prices and public pressures. RAND Journal of Economics 2008, 29(3):636-663.
49. Shin Jeong-Shik Perception of price when price information is costly: evidence from residential electricity demand. Review of Economics and Statistics 1985, 67(4):591-598.
50. Showalter Marilyn Price trends for industrial electricity, regulated versus deregulated states. Power in the Public Interest 2007, 6. Nov.
51. Showalter Marilyn Electricity price trends in regulated versus deregulated states. Power in the Public Interest 2007, 7. Nov.
52. Smale Robin, et al. The impact of CO2 emissions trading on firm profits and market prices. Climate Policy 2006, 6(1):31-48.
53. Webster Mort, Paltsev Sergey, Reilly John Autonomous efficiency improvement or income elasticity energy demand: does it matter?. Energy Economics 2008, 30:2785-2798.
54. Wilder Ronald P., Willenborg John F. Residential demand for electricity: a consumer panel approach. Southern Economic Journal 1975, 42(2):212-217.