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Patterns in Residential Gas and Electricity Consumption: An Econometric Analysis

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  • Lee, Ray-Shine
  • Singh, Nirvikar

Abstract

Since a subset of households have zero gas consumption, the purpose of the study is to quantify potential energy conservation from increasing gas availability. The authors investigate individual consumption data of natural gas and electricity under two nonnested specifications: a sample selectivity model with homogeneous normal error terms and a multiple regression model with heterogeneous distribution-free error terms of nearest-neighbor type. The prediction of energy conservation is that electricity demand could be reduced by 2473.47 kilowatt-hours a year per household if a gas connection is available to nonusers and the utility company would need to supply 611.09 therms of natural gas.

Suggested Citation

  • Lee, Ray-Shine & Singh, Nirvikar, 1994. "Patterns in Residential Gas and Electricity Consumption: An Econometric Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 12(2), pages 233-241, April.
  • Handle: RePEc:bes:jnlbes:v:12:y:1994:i:2:p:233-41
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    Citations

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    Cited by:

    1. Koji Miyawaki & Yasuhiro Omori & Akira Hibiki, 2018. "A discrete/continuous choice model on a nonconvex budget set," Econometric Reviews, Taylor & Francis Journals, vol. 37(2), pages 89-113, February.
    2. Yoo, Seung-Hoon & Lim, Hea-Jin & Kwak, Seung-Jun, 2009. "Estimating the residential demand function for natural gas in Seoul with correction for sample selection bias," Applied Energy, Elsevier, vol. 86(4), pages 460-465, April.
    3. Koji Miyawaki & Yasuhiro Omori, 2007. "Duality-Based Analysis of Residential Gas Demand under Decreasing Block Rate Pricing," CIRJE F-Series CIRJE-F-506, CIRJE, Faculty of Economics, University of Tokyo.
    4. Poyer, David A. & Henderson, Lenneal & Teotia, Arvind P. S., 1997. "Residential energy consumption across different population groups: comparative analysis for Latino and non-Latino households in USA," Energy Economics, Elsevier, vol. 19(4), pages 445-463, October.
    5. Leth-Petersen, Soren & Togeby, Mikael, 2001. "Demand for space heating in apartment blocks: measuring effects of policy measures aiming at reducing energy consumption," Energy Economics, Elsevier, vol. 23(4), pages 387-403, July.
    6. Rehdanz, Katrin, 2007. "Determinants of residential space heating expenditures in Germany," Energy Economics, Elsevier, vol. 29(2), pages 167-182, March.
    7. Soldo, Božidar, 2012. "Forecasting natural gas consumption," Applied Energy, Elsevier, vol. 92(C), pages 26-37.
    8. Koji Miyawaki & Yasuhiro Omori & Akira Hibiki, 2010. "Discrete/Continuous Choice Model of the Residential Gas Demand on the Nonconvex Budget Set," CIRJE F-Series CIRJE-F-770, CIRJE, Faculty of Economics, University of Tokyo.
    9. Wang, Ting & Lin, Boqiang, 2014. "China's natural gas consumption and subsidies—From a sector perspective," Energy Policy, Elsevier, vol. 65(C), pages 541-551.
    10. Chansu Lim, 2019. "Estimating Residential and Industrial City Gas Demand Function in the Republic of Korea—A Kalman Filter Application," Sustainability, MDPI, Open Access Journal, vol. 11(5), pages 1-1, March.
    11. Bishwa Koirala & Alok Bohara & Hui Li, 2013. "Effects of energy-efficiency building codes in the energy savings and emissions of carbon dioxide," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 15(3), pages 271-290, July.
    12. Liao, Huei-Chu & Chang, Tsai-Feng, 2002. "Space-heating and water-heating energy demands of the aged in the US," Energy Economics, Elsevier, vol. 24(3), pages 267-284, May.
    13. Robert Bartels & Denzil G. Fiebig & Daehoon Nahm, 1996. "Regional End‐Use Gas Demand in Australia," The Economic Record, The Economic Society of Australia, vol. 72(219), pages 319-331, December.

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