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Residential electricity consumption in Seattle

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  • Fullerton, Thomas M.
  • Juarez, David A.
  • Walke, Adam G.

Abstract

Recent empirical research for different regions of the United States indicates that residential electricity may be an “inferior” good whose consumption is negatively correlated with income. That is a provocative result that runs counter to what many earlier econometric studies indicate. Given that, it makes sense to examine how electricity consumption behaves in different regional service areas. Even if residential electricity is an inferior good whose usage declines as income rises, there is no guarantee that this will be the case across all service areas. This study examines residential electricity consumption for Seattle, Washington, the largest metropolitan economy in the northwestern region of the United States. Results from a dynamic error correction modeling approach indicate that residential electricity consumption reacts in statistically significant manners to changes in real price, real income, and cold weather. In the short-run, residential electricity is a normal good in this metropolitan economy. In the long-run, residential electricity appears to be an inferior good in Seattle. All else equal, whenever real per capita income growth exceeds 1.2%, per capita residential electricity usage declines in Seattle.

Suggested Citation

  • Fullerton, Thomas M. & Juarez, David A. & Walke, Adam G., 2012. "Residential electricity consumption in Seattle," Energy Economics, Elsevier, vol. 34(5), pages 1693-1699.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:5:p:1693-1699
    DOI: 10.1016/j.eneco.2012.02.004
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    5. Fullerton Jr., Thomas M. & Macias, David R. & Walke, Adam G., 2016. "Residential Electricity Demand in El Paso," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 46(2), December.
    6. Desiderio Romero-Jordán & Pablo del Río & Cristina Peñasco, 2014. "Household electricity demand in Spanish regions. Public policy implications," Working Papers 2014/24, Institut d'Economia de Barcelona (IEB).
    7. Keighton R. Allen & Thomas M. Fullerton, 2019. "Metropolitan Evidence Regarding Small Commercial and Industrial Electricity Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 1-11.
    8. Desiderio Romero-Jordán & Pablo del Río & Cristina Peñasco, 2014. "Household electricity demand in Spanish regions. Public policy implications," Working Papers 2014/24, Institut d'Economia de Barcelona (IEB).
    9. Thomas M. Fullerton & Ericka C. M ndez-Carrillo & Adam G. Walke, 2014. "Electricity Demand in a Northern Mexico Metropolitan Economy," International Journal of Energy Economics and Policy, Econjournals, vol. 4(4), pages 495-505.
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    More about this item

    Keywords

    Residential electricity consumption; Seattle metropolitan economy; Applied econometrics;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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