Price Effects of Energy-Efficient Technologies: A Study of Residential Demand for Heating and Cooling
Volume: Volume 17, No. 3
Issue: Autumn 1986
Pages: pp. 310-325
Authors: Jeffrey A. Dubin, Allen K. Miedema, and Ram V. Chandran
Title: Price Effects of Energy-Efficient Technologies: A Study of Residential Demand for Heating and Cooling
Abstract: Energy-efficient appliances reduce the marginal price of the services they deliver. This article shows empirically that such price reductions result in energy savings that are smaller than those engineering techniques generally project. Using econometric techniques with data from a unique utility experiment and a detailed engineering-thermal load model, we find that actual conservation is as much as 13% below engineering estimates for cooling and 8-12% below for heating. Customers who conserve electricity are also persistent; their houses are comparatively warmer in Summer and cooler in Winter.
JEL Classification
Industry Studies Electrical, Gas, Communication, and Information Services (6352)
Energy (7230)
Consumer Economics Expenditure Patterns and Consumption of Specific Items (9212)