Impact of energy price increases on households: an illustration

Technical Report · Thu Jan 01 04:00:00 EST 1976

OSTI ID:6557105

Stucker, J P

The differential effects of energy price increases on households at different income levels are estimated. The household's direct expenditures on energy are taken from household budget studies. The indirect consumption of energy is estimated by applying production coefficients--derived from input-output analysis--to the household's non-energy expenditures. Thus, total energy requirements are obtained and stated as percentages of household income for five types of fuel--coal, crude petroleum, refined petroleum products, electricity, and natural gas. These percentages allow the impact to be estimated of increases in any of the energy prices on the households assuming, as a first approximation, that the price changes result in no substitution among goods in general or energy forms in particular either in production or in consumption. This assumption insures that the methodology will overestimate the true impacts. Thus, all of the estimates should be viewed as upper bounds on national average budget impacts. The elements of input-output analysis that pertain to the derivation of total input requirements and to the determination of output prices in competitive markets are reviewed. Then, Section II investigates the composition of consumer expenditures on energy and the pattern of expenditures over income groups. Finally, Section III discusses the implications of findings for public policy.

• Research Organization: RAND Corp., Santa Monica, CA (USA)
• OSTI ID: 6557105
• Report Number(s): P-5585
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
298000 -- Energy Planning & Policy-- Consumption & Utilization
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
CARBONACEOUS MATERIALS
CHARGES
COAL
COMPETITION
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
ELECTRIC POWER
ENERGY CONSUMPTION
ENERGY POLICY
ENERGY SOURCES
ENERGY SUPPLIES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUEL SUBSTITUTION
FUELS
GAS FUELS
GASES
GOVERNMENT POLICIES
INCOME
INPUT-OUTPUT ANALYSIS
MARKET
NATURAL GAS
PETROLEUM
PETROLEUM PRODUCTS
POWER
RESIDENTIAL SECTOR