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Electricity Consumption and Durable Housing: Understanding Cohort Effects

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  • Dora L. Costa
  • Matthew E. Kahn

Abstract

We find that households living in California homes built in the 1960s and 1970s had high electricity consumption in 2000 relative to houses of more recent vintages because the price of electricity at the time of home construction was low. Homes built in the early 1990s had lower electricity consumption than homes of earlier vintages because the price of electricity was higher. The elasticity of the price of electricity at the time of construction was -0.22. As homes built between 1960 and 1989 become a smaller share of the housing stock, average household electricity purchases will fall.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.88
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 101 (2011)
Issue (Month): 3 (May)
Pages: 88-92

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Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:88-92

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  1. Dora L. Costa & Matthew E. Kahn, 2010. "Why Has California’s Residential Electricity Consumption Been So Flat since the 1980s?: A Microeconometric Approach," NBER Working Papers 15978, National Bureau of Economic Research, Inc.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. The Consequences of Carbon Cap & Trade
    by Matthew E. Kahn in Legal Planet on 2013-04-20 20:45:31
  2. To Be Green in Seattle
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-10-18 02:36:00
  3. Energy Consumption and Real Estate Prices
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-08-28 17:36:00
  4. Durable Housing and Overall Trends in the Economy's Energy Efficiency
    by Matthew E. Kahn in Environmental and Urban Economics on 2011-01-29 15:26:00
  5. Will a Rebate of $4,000 Stimulate Green Residential Retrofits?
    by Matthew Kahn in the reality-based community on 2011-03-01 23:57:49
  6. links for 2011-02-12
    by Jim in Our Word is Our Weapon on 2011-02-13 03:00:52
  7. Big Data and Field Experiments: The Case of NYU’s Center for Urban Science and Progress
    by Matthew E. Kahn in The Reality-Based Community on 2013-02-24 16:24:48

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