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Title: Fuel choice and aggregate energy demand in the residential and commercial sectors of the US

Conference ·
OSTI ID:5589600

The residential and commercial sectors are important energy consumers in the US economy, consuming approximately 35% of total national energy use in 1975. Specifically, this studies' objectives are: (1) to develop aggregate energy demand models for both the residential and commercial sectors, and (2) to develop multinomial logit models of fuel choice for both sectors from which the demands for individual fuels (electricity, natural gas, and fuel oil) are estimated. Both short- and long-run market share and conventional fuel demand elasticities are analytically derived with the impact of interfuel substitution analyzed for the two sectors separately. The fuel-choice models utilize constrained price-ratio coefficients to conform with established logit theory. In addition, fuel price variables other than the own-price and numeraire price are included in this logit model. Explanatory variables representing the capital stock of energy using equipment in the commercial sector and the availability of natural gas are included in the aggregate energy demand and fuel choice models to improve their specification. The models are estimated with improved data (pooled time series and state level) which allocate to the residential sector the master-metered electricity and natural gas use components that traditional energy consumption data sources assign to the commercial sector. In addition, household and commercial distillate fuel oil use is differentiated on a state-by-state basis.

Research Organization:
Oak Ridge National Lab., TN (USA)
DOE Contract Number:
W-7405-ENG-26
OSTI ID:
5589600
Report Number(s):
CONF-790661-2
Resource Relation:
Conference: Western Economics Association annual meeting, Las Vegas, NV, USA, 17 Jun 1979
Country of Publication:
United States
Language:
English