IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v101y2011i3p88-92.html
   My bibliography  Save this article

Electricity Consumption and Durable Housing: Understanding Cohort Effects

Author

Listed:
  • 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.

Suggested Citation

  • 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:aea:aecrev:v:101:y:2011:i:3:p:88-92
    as

    Download full text from publisher

    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.88
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.

    File URL: http://www.aeaweb.org/aer/data/may2011/P2011_1614_data.zip
    File Function: dataset accompanying article
    Download Restriction: no

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Koichiro Ito, 2014. "Do Consumers Respond to Marginal or Average Price? Evidence from Nonlinear Electricity Pricing," American Economic Review, American Economic Association, vol. 104(2), pages 537-563, February.
    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.
    Full references (including those not matched with items on IDEAS)

    Citations

    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 2013-04-21 01:45:31

    Citations

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


    Cited by:

    1. 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.
    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. Michelsen, Claus & El-Shagi, Makram & Rosenschon, Sebastian, 2016. "The diffusion of "green'' buildings in the housing market: empirics on the long run effects of energy efficiency regulation," Annual Conference 2016 (Augsburg): Demographic Change 145534, Verein für Socialpolitik / German Economic Association.
    4. Hårsman, Björn & Wahlström, Marie H., 2014. "Residential energy consumption and conservation," Working Paper Series in Economics and Institutions of Innovation 388, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Cristina Cattaneo, 2018. "Internal and External Barriers to Energy Efficiency: Made-to-Measure Policy Interventions," Working Papers 2018.08, Fondazione Eni Enrico Mattei.
    6. 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.
    7. Agarwal, Sumit & Rengarajan, Satyanarain & Sing, Tien Foo & Yang, Yang, 2017. "Nudges from school children and electricity conservation: Evidence from the “Project Carbon Zero” campaign in Singapore," Energy Economics, Elsevier, vol. 61(C), pages 29-41.
    8. Agarwal, Sumit & Satyanarain, Rengarajan & Sing, Tien Foo & Vollmer, Derek, 2016. "Effects of construction activities on residential electricity consumption: Evidence from Singapore's public housing estates," Energy Economics, Elsevier, vol. 55(C), pages 101-111.
    9. Longhi, Simonetta, 2014. "Residential energy use and the relevance of changes in household circumstances," ISER Working Paper Series 2014-22, Institute for Social and Economic Research.
    10. Grant Jacobsen, 2016. "Improving Energy Codes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    11. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, Elsevier.
    12. repec:eee:eneeco:v:65:y:2017:i:c:p:161-171 is not listed on IDEAS
    13. Anna Alberini, Will Gans, and Charles Towe, 2016. "Free Riding, Upsizing, and Energy Efficiency Incentives in Maryland Homes," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    14. Rainald Borck & Jan Brueckner, 2016. "Optimal energy taxation in cities," ERSA conference papers ersa16p714, European Regional Science Association.
    15. Reyna, Janet L. & Chester, Mikhail V. & Rey, Sergio J., 2016. "Defining geographical boundaries with social and technical variables to improve urban energy assessments," Energy, Elsevier, vol. 112(C), pages 742-754.
    16. 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.
    17. Estiri, Hossein, 2015. "The indirect role of households in shaping US residential energy demand patterns," Energy Policy, Elsevier, vol. 86(C), pages 585-594.
    18. Michelsen, Claus & Rosenschon, Sebastian & Schulz, Christian, 2015. "Small might be beautiful, but bigger performs better: Scale economies in “green” refurbishments of apartment housing," Energy Economics, Elsevier, vol. 50(C), pages 240-250.
    19. Marie Wahlström, 2013. "The Residential Value of Energy Efficient Housing," ERES eres2013_331, European Real Estate Society (ERES).
    20. Longhi, Simonetta, 2015. "Residential energy expenditures and the relevance of changes in household circumstances," Energy Economics, Elsevier, vol. 49(C), pages 440-450.

    More about this item

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Electricity Consumption and Durable Housing: Understanding Cohort Effects (AER 2011) in ReplicationWiki

    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:aea:aecrev:v:101:y:2011:i:3:p:88-92. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.