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Title: Aggregrate consumer expenditures on energy. Final report

Technical Report ·
OSTI ID:6586685

This report presents a new economic model for the allocation of aggregate consumer expenditures on energy in the United States. Our model is based on a theory of consumer behavior involving two stages. In the first stage total expenditures are allocated between and nonenergy commodities. Allocation depends on the price of energy, prices of all nonenergy commodities, and the level of total expenditure. Total energy expenditure in the second stage is allocated among individual types of energy. The second stage allocation depends on the prices of individual types of energy and the level of total energy expenditure. Our econometric model can be applied to the generation of projection of aggregrate energy demand in the United States. Projected future energy prices, the future level and distribution of total energy expenditure, and the future demographic development of the population for projections. The model can also be used to make projections for individual consumer groups within the United States, classified by total energy expenditure and by demographic characteristics. Finally, it can be integrated into a model of energy and nonenergy expenditures to provide a complete model of aggregate consumer behavior. Our econometric model of aggregate consumer behavior can be applied to the generation of projection of demand individual types of energy and for all nonenergy commodities in the United States.

Research Organization:
Jorgenson (Dale W.) Associates, Cambridge, MA (USA)
OSTI ID:
6586685
Report Number(s):
EPRI-EA-3604; ON: TI85920035
Country of Publication:
United States
Language:
English