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Energy demand and interfuel substitution in the combined residential and commercial sector

Technical Report ·
DOI:https://doi.org/10.2172/7349633· OSTI ID:7349633

An integrated energy-demand model for the combined residential and commercial sector is presented. The model consists of two parts: the first determines aggregate demand for energy, and the second estimates market-shares for electricity, natural gas, and petroleum products. Demand elasticities for aggregate as well as individual fuels are analytically derivable. The study concludes that pricing strategies can be effective in stimulating the conservation of energy. Furthermore, raising prices of petroleum products and natural gas has greater potential for conservation of end-use energy than raising electricity prices. However, when the primary sources of energy are considered, the results show that raising the prices of electricity is far more effective for energy conservation than raising the prices of natural gas and petroleum products. This practice is more effective because the overall efficiency of fuel use is lower when electricity is employed as the end-use energy form.

Research Organization:
Oak Ridge National Lab., Tenn. (USA)
DOE Contract Number:
W-7405-ENG-26
OSTI ID:
7349633
Report Number(s):
ORNL/TM-5557
Country of Publication:
United States
Language:
English