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Fuel choice and aggregate energy demand in the residential and commercial sectors

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  • Cohn, Steve M.

Abstract

The energy demand response of the residential and commercial sectors to fuel price changes is of increasing importance to public policy makers. In this paper, the demands for energy in both sectors are examined separately using a refined data base. For each sector, a multinomial logit formulation is utilized, along with an aggregate demand equation to determine analytically short- and long-run fuel price elasticities of demand for the major fuels consumed. It is found that increases in energy prices have a greater effect on energy demand in the commercial sector. Furthermore, in both sectors, raising electricity prices has a greater effect for conserving energy (both end-use and primary) than do equal price rises for natural gas or heating oils.

Suggested Citation

  • Cohn, Steve M., 1980. "Fuel choice and aggregate energy demand in the residential and commercial sectors," Energy, Elsevier, vol. 5(12), pages 1203-1212.
    • Handle: RePEc:eee:energy:v:5:y:1980:i:12:p:1203-1212
    DOI: 10.1016/0360-5442(80)90062-6
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    Cited by:

    1. da Fonseca, André L.A. & Chvatal, Karin M.S. & Fernandes, Ricardo A.S., 2021. "Thermal comfort maintenance in demand response programs: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 141(C).
    2. Iuliia Ogarenko & Klaus Hubacek, 2013. "Eliminating Indirect Energy Subsidies in Ukraine: Estimation of Environmental and Socioeconomic Effects Using Input–Output Modeling," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 2(1), pages 1-27, December.

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