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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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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16732.

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Date of creation: Jan 2011
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Publication status: published as Dora L. Costa & Matthew E. Kahn, 2011. "Electricity Consumption and Durable Housing: Understanding Cohort Effects," American Economic Review, American Economic Association, vol. 101(3), pages 88-92, May.
Handle: RePEc:nbr:nberwo:16732

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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.:
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  1. Koichiro Ito, 2012. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," NBER Working Papers 18533, National Bureau of Economic Research, Inc.
  2. 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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Cited by:
  1. Brounen, Dirk & Kok, Nils & Quigley, John M., 2012. "Residential energy use and conservation: Economics and demographics," European Economic Review, Elsevier, vol. 56(5), pages 931-945.
  2. Matthew E. Kahn & Nils Kok & John M. Quigley, 2013. "Commercial Building Electricity Consumption Dynamics: The Role of Structure Quality, Human Capital, and Contract Incentives," NBER Working Papers 18781, National Bureau of Economic Research, Inc.
  3. Makram El-Shagi & Claus Michelsen & Sebastian Rosenschon, 2014. "Regulation, Innovation and Technology Diffusion: Evidence from Building Energy Efficiency Standards in Germany," Discussion Papers of DIW Berlin 1371, DIW Berlin, German Institute for Economic Research.
  4. Anna Alberini & Will Gans & Charles Towe, 2013. "Free Riding, Upsizing, and Energy Efficiency Incentives in Maryland Homes," Working Papers 2013.82, Fondazione Eni Enrico Mattei.
  5. Kahn, Matthew E. & Kok, Nils & Quigley, John M., 2014. "Carbon emissions from the commercial building sector: The role of climate, quality, and incentives," Journal of Public Economics, Elsevier, vol. 113(C), pages 1-12.

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