Residential electricity consumption in Seattle
AbstractRecent 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 34 (2012)
Issue (Month): 5 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Residential electricity consumption; Seattle metropolitan economy; Applied econometrics;
Find related papers by 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 - - Business Economics - - - Business Economics
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Shin, Jeong-Shik, 1985. "Perception of Price When Price Information Is Costly: Evidence from Residential Electricity Demand," The Review of Economics and Statistics, MIT Press, vol. 67(4), pages 591-98, November.
- Silk, Julian I. & Joutz, Frederick L., 1997. "Short and long-run elasticities in US residential electricity demand: a co-integration approach," Energy Economics, Elsevier, vol. 19(4), pages 493-513, October.
- Thomas Fullerton & Roberto Tinajero & Jorge Mendoza Cota, 2007. "An Empirical Analysis of Tijuana Water Consumption," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(3), pages 357-369, September.
- Francesco VENTURINI, 2006.
"The Long-Run Impact of ICT,"
254, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
- Anderson, Kent P, 1973. "Residential Demand for Electricity: Econometric Estimates for California and the United States," The Journal of Business, University of Chicago Press, vol. 46(4), pages 526-53, October.
- Filippini, Massimo, 1995. "Swiss residential demand for electricity by time-of-use," Resource and Energy Economics, Elsevier, vol. 17(3), pages 281-290, November.
- AfDB AfDB, . "AfDB Group Annual Report in Brief 2009," Annual Report, African Development Bank, number 65 edited by Koua Louis Kouakou, 3.
- Russell Davidson & James G. MacKinnon, 1987.
"Testing for Consistency using Artificial Regressions,"
687, Queen's University, Department of Economics.
- Davidson, Russell & MacKinnon, James G., 1989. "Testing for Consistency using Artificial Regressions," Econometric Theory, Cambridge University Press, vol. 5(03), pages 363-384, December.
- Mark Grinblatt & Matti Keloharju & Seppo Ikäheimo, 2008. "Social Influence and Consumption: Evidence from the Automobile Purchases of Neighbors," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 735-753, November.
- AfDB AfDB, . "AfDB Group Annual Report 2009 (Arabic)," Annual Report, African Development Bank, number 68 edited by Koua Louis Kouakou, 3.
- Espey, James A. & Espey, Molly, 2004. "Turning on the Lights: A Meta-Analysis of Residential Electricity Demand Elasticities," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(01), April.
- Contreras, Sergio & Smith, Wm. Doyle & Roth, Timothy P. & Fullerton, Thomas M., Jr., 2009. "Regional Evidence regarding U.S. Residential Electricity Consumption," MPRA Paper 29093, University Library of Munich, Germany, revised 2009.
- Ruth J. Maddigan & Wen S. Chern & Colleen Gallagher Rizy, 1983. "Rural Residential Demand for Electricity," Land Economics, University of Wisconsin Press, vol. 59(2), pages 150-162.
- Zachariadis, Theodoros & Pashourtidou, Nicoletta, 2007. "An empirical analysis of electricity consumption in Cyprus," Energy Economics, Elsevier, vol. 29(2), pages 183-198, March.
- Zachariadis, Theodoros, 2010. "Forecast of electricity consumption in Cyprus up to the year 2030: The potential impact of climate change," Energy Policy, Elsevier, vol. 38(2), pages 744-750, February.
- Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, January.
- Cicchetti, Charles J. & Smith, V. Kerry, 1975. "Alternative price measures and the residential demand for electricity: A specification analysis," Regional Science and Urban Economics, Elsevier, vol. 5(4), pages 503-516, December.
- AfDB AfDB, . "AfDB Group Annual Report 2009," Annual Report, African Development Bank, number 66 edited by Koua Louis Kouakou, 3.
- Pagan, Adrian, 1974. "A Generalised Approach to the Treatment of Autocorrelation," Australian Economic Papers, Wiley Blackwell, vol. 13(23), pages 267-80, December.
- Dergiades, Theologos & Tsoulfidis, Lefteris, 2008. "Estimating residential demand for electricity in the United States, 1965-2006," Energy Economics, Elsevier, vol. 30(5), pages 2722-2730, September.
- Narayan, Paresh Kumar & Smyth, Russell & Prasad, Arti, 2007. "Electricity consumption in G7 countries: A panel cointegration analysis of residential demand elasticities," Energy Policy, Elsevier, vol. 35(9), pages 4485-4494, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.