Fuel choices in the household sector. [Electricity, natural gas, fuel oil, other]

Technical Report · Fri Oct 01 04:00:00 EDT 1976

DOI:https://doi.org/10.2172/7340933· OSTI ID:7340933

Lin, W.; Hirst, E.; Cohn, S.

This study analyzes residential fuel choices for five major end-uses: space heating, water heating, cooking, air conditioning, and food freezing. Market share models for electricity, gas oil, and ''other/none'' are estimated using 1970 cross-section data for 48 states, sensitive to changes in fuel prices, equipment prices, income, demographic, and climatic variables. Logit models are estimated jointly for each end use by incorporating a set of linear restrictions derived from the requirement that the sum of market shares equal unity. Estimated saturation elasticities with respect to own fuel prices are generally greater than unity. Cross-price elasticities are generally less than the own-price elasticities and usually less than unity. Saturation elasticities with respect to equipment prices are generally greater than unity. A comparison of fuel price and equipment price elasticities suggests that households are more reluctant (require a higher internal rate of return) to invest in energy-efficient household equipment if the investment requires a change in fuel than if the investment requires no fuel switching. Also, higher interest rates are required for investments in energy-efficient appliances (ranges, freezers) than for investments in basic household equipment (space heating systems).

• Research Organization: Oak Ridge National Lab., Tenn. (USA)
• DOE Contract Number: W-7405-ENG-26
• OSTI ID: 7340933
• Report Number(s): ORNL/CON-3
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
292000* -- Energy Planning & Policy-- Supply
Demand & Forecasting
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
AIR CONDITIONERS
APPLIANCES
CHARGES
CLIMATES
DAILY VARIATIONS
ECONOMIC ELASTICITY
ELECTRIC APPLIANCES
ELECTRICITY
ENERGY CONSUMPTION
ENERGY MODELS
ENERGY SOURCES
FLUIDS
FOOD
FOSSIL FUELS
FUEL GAS
FUELS
GAS APPLIANCES
GAS FUELS
GASES
HEATERS
HEATING
INVESTMENT
NATURAL GAS
NORTH AMERICA
PETROLEUM PRODUCTS
PRESERVATION
RESIDENTIAL SECTOR
SPACE HEATING
USA
VARIATIONS
WATER HEATERS