IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/34855.html
   My bibliography  Save this paper

U.S. commercial electricity consumption

Author

Listed:
  • Contreras, Sergio
  • Smith, Wm. Doyle
  • Fullerton, Thomas M., Jr.

Abstract

Commercial electricity usage exceeds that of industrial usage and is almost as large as residential electricity consumption in the United States. In this study, regional economic, demographic, and climatic data are used to analyze commercial electricity demand in the United States. Results indicate that total commercial demand for electricity is negatively related to price. In addition, the number of businesses and service income positively affect electricity demand for commercial use. The results are similar for equations estimated for kilowatt-hours demanded per business. The regional dummy variables exhibit different signs, which may occur due to climate factors because warm weather regions experience greater volumes of cooling degree-days, while cool weather regions observe larger amounts of heating degree-days. Although coefficients for the price of natural gas are positive, they do not satisfy the 5-percent significance criterion. The latter suggests that natural gas may not be a substitute good for electricity within the commercial sector of the U.S. economy.

Suggested Citation

  • Contreras, Sergio & Smith, Wm. Doyle & Fullerton, Thomas M., Jr., 2010. "U.S. commercial electricity consumption," MPRA Paper 34855, University Library of Munich, Germany, revised 22 May 2011.
    • Handle: RePEc:pra:mprapa:34855
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/34855/2/MPRA_paper_34855.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Frank T. Denton & Dean C. Mountain & Byron G. Spencer, 2003. "Energy Demand with Declining Rate Schedules: An Econometric Model for the U.S. Commercial Sector," Land Economics, University of Wisconsin Press, vol. 79(1), pages 86-105.
    3. Marvin J. Horowitz, 2007. "Changes in Electricity Demand in the United States from the 1970s to 2003," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 93-120.
    4. Davidson, Russell & MacKinnon, James G., 1989. "Testing for Consistency using Artificial Regressions," Econometric Theory, Cambridge University Press, vol. 5(3), pages 363-384, December.
    5. Badri, Masood A., 1992. "Analysis of demand for electricity in the United States," Energy, Elsevier, vol. 17(7), pages 725-733.
    6. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    7. Halvorsen, Robert, 1975. "Residential Demand for Electric Energy," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 12-18, February.
    8. 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 591-598, November.
    9. Brown, Richard E. & Koomey, Jonathan G., 2003. "Electricity use in California: past trends and present usage patterns," Energy Policy, Elsevier, vol. 31(9), pages 849-864, July.
    10. Marvin J. Horowitz, 2004. "Electricity Intensity in the Commercial Sector: Market and Public Program Effects," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 115-138.
    11. Xiao, Ni & Zarnikau, Jay & Damien, Paul, 2007. "Testing functional forms in energy modeling: An application of the Bayesian approach to U.S. electricity demand," Energy Economics, Elsevier, vol. 29(2), pages 158-166, March.
    12. Thomas Fullerton & Roberto Tinajero & Jorge Mendoza Cota, 2007. "An Empirical Analysis of Tijuana Water Consumption," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(3), pages 357-369, September.
    13. Lester D. Taylor, 1975. "The Demand for Electricity: A Survey," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 74-110, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Jee Young & Oh, Hyungna & Choi, Kyung-Mee, 2019. "Why Are Peak Loads Observed during Winter Months in Korea?," KDI Journal of Economic Policy, Korea Development Institute (KDI), vol. 41(1), pages 43-58.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fullerton, Thomas M. & Juarez, David A. & Walke, Adam G., 2012. "Residential electricity consumption in Seattle," Energy Economics, Elsevier, vol. 34(5), pages 1693-1699.
    2. Alberini, Anna & Filippini, Massimo, 2011. "Response of residential electricity demand to price: The effect of measurement error," Energy Economics, Elsevier, vol. 33(5), pages 889-895, September.
    3. 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.
    4. Boogen, Nina & Datta, Souvik & Filippini, Massimo, 2017. "Demand-side management by electric utilities in Switzerland: Analyzing its impact on residential electricity demand," Energy Economics, Elsevier, vol. 64(C), pages 402-414.
    5. 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.
    6. 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.
    7. Thomas M. Fullerton & Ileana M. Resendez & Adam G. Walke, 2015. "Upward Sloping Demand for a Normal Good? Residential Electricity in Arkansas," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1065-1072.
    8. Fullerton, Thomas M., Jr. & Ceballos, Alejandro & Walke, Adam G., 2015. "Short-Term Forecasting Analysis for Municipal Water Demand," MPRA Paper 78259, University Library of Munich, Germany, revised 04 Aug 2015.
    9. Thomas M. Fullerton & George Novela & David Torres & Adam G. Walke, 2015. "Metropolitan Econometric Electric Utility Forecast Accuracy," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 738-745.
    10. Kiran B Krishnamurthy, Chandra & Kriström, Bengt, 2013. "A cross-country analysis of residential electricity demand in 11 OECD-countries," CERE Working Papers 2013:5, CERE - the Center for Environmental and Resource Economics, revised 30 Jun 2014.
    11. Kussel, Gerhard & Frondel, Manuel, 2016. "Switching Response to Power Prices: Evidence from German Households," VfS Annual Conference 2016 (Augsburg): Demographic Change 145728, Verein für Socialpolitik / German Economic Association.
    12. Richard Cebula, 2012. "Recent evidence on determinants of per residential customer electricity consumption in the U.S.: 2001-2005," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 36(4), pages 925-936, October.
    13. Heshmati, Almas, 2012. "Survey of Models on Demand, Customer Base-Line and Demand Response and Their Relationships in the Power Market," IZA Discussion Papers 6637, Institute of Labor Economics (IZA).
    14. Almas Heshmati, 2014. "Demand, Customer Base-Line And Demand Response In The Electricity Market: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 862-888, December.
    15. N. Vijayamohanan Pillai, 2010. "Electricity Demand Analysis and Forecasting- The Tradition is Questioned," Working Papers id:2966, eSocialSciences.
    16. 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.
    17. Fullerton, Thomas M., Jr. & White, Katherine & Smith, Wm. Doyle & Walke, Adam G., 2012. "An Empirical Analysis of Halifax Municipal Water Consumption," MPRA Paper 54113, University Library of Munich, Germany, revised 14 Mar 2013.
    18. Krishnamurthy, Chandra Kiran B. & Kriström, Bengt, 2015. "A cross-country analysis of residential electricity demand in 11 OECD-countries," Resource and Energy Economics, Elsevier, vol. 39(C), pages 68-88.
    19. Céline Nauges & Arnaud Reynaud, 2001. "Estimation de la demande domestique d'eau potable en France," Revue Économique, Programme National Persée, vol. 52(1), pages 167-185.
    20. Acuña, Guillermo, 2017. "Elasticidades de la demanda de agua en Chile [Elasticities of water demand in Chile]," MPRA Paper 82916, University Library of Munich, Germany.

    More about this item

    Keywords

    Commercial Electricity Consumption; Regional Economics;

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34855. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.