The Price Elasticity of Residential Energy Use,
Abstract
The conclusions of this paper are offered as conjectures rather than as matters of fact, since they rest upon a number of interesting clues rather than decisive proofs. With respect to estimation techniques: Aggregation across different household energy-using functions may lead to acceptable estimates of the own-price elasticities of total consumption but almost surely will produce erroneous estimates of the cross-price elasticities. As regards household energy-consumption behavior: The difference between the own-price elasticity of total consumption and that of saturation is a measure of the responsiveness of 'conservation' to price.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 01, 1974
- Accession Number
- AD0786604
Entities
People
- Kent P. Anderson
Organizations
- RAND Corporation