Estimate of consumer discount rates implicit in single-family-housing construction practices

Technical Report · Wed Apr 01 04:00:00 EST 1981

OSTI ID:6548573

O'Neal, D L; Corum, K R; Jones, J L

The calculation of consumer discount rates implied by purchases of energy conservation options in new residences is described. The results are based on single-family residential construction practices in 1976, together with engineering evaluation of cost and energy use effects of available energy-conserving construction practices. The discount rate is estimated for ten cities and three heating fuels (gas, oil, and electricity). Sensitivity of the results to assumptions regarding financing arrangements and expected energy prices is also analyzed. The discount rates resulting from this analysis are substantially higher than market rates of interest. They vary with heating fuel choice, location, and price and financing assumptions, but two cases regarded as most realistic result in discount rates (real, net of inflation) which range from a minimum of 14% to over 100%.

• Research Organization: Oak Ridge National Lab., TN (USA)
• DOE Contract Number: W-7405-ENG-26
• OSTI ID: 6548573
• Report Number(s): ORNL/CON-62
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
291000* -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
BEHAVIOR
BUILDINGS
CALCULATION METHODS
CAPITALIZED COST
CONSTRUCTION
CONSUMER PRODUCTS
COST
ECONOMIC ANALYSIS
ECONOMICS
EFFICIENCY
ELECTRIC POWER
ENERGY CONSERVATION
ENERGY CONSUMPTION
ENERGY EFFICIENCY
ENERGY SOURCES
FINANCING
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
HOUSES
INTEREST RATE
INVESTMENT
NATURAL GAS
NORTH AMERICA
PETROLEUM
POWER
PRICES
RESIDENTIAL BUILDINGS
USA