Climate change adaptation: A study of fuel choice and consumption in the US energy sector
Using cross-sectional data, this paper estimates a national energy model of fuel choice by both households and firms. Consumers in warmer locations rely relatively more heavily on electricity rather than natural gas, oil, and other fuels. They also use more energy. Climate change will likely increase electricity consumption on cooling but reduce the use of other fuels for heating. On net, American energy expenditures will likely increase, resulting in welfare damages that increase as temperatures rise. For example, if the US warms by 5 °C by 2100, we predict annual welfare losses of $57 billion.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- 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.
- Sheila Olmstead & W. Michael Hanemann & Robert N. Stavins, 2007.
"Water Demand Under Alternative Price Structures,"
NBER Working Papers
13573, National Bureau of Economic Research, Inc.
- West, Sarah E., 2004. "Distributional effects of alternative vehicle pollution control policies," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 735-757, March.
- Heckman, James, 2013.
"Sample selection bias as a specification error,"
Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
- Considine, Timothy J., 2000. "The impacts of weather variations on energy demand and carbon emissions," Resource and Energy Economics, Elsevier, vol. 22(4), pages 295-314, October.
- Donald H. Rosenthal & Howard K. Gruenspecht & Emily A. Moran, 1995. "Effects of Global Warming on Energy Use for Space Heating and Cooling in the United States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-96.
- Vaage, Kjell, 2000.
"Heating technology and energy use: a discrete/continuous choice approach to Norwegian household energy demand,"
Elsevier, vol. 22(6), pages 649-666, December.
- Vaage, K., 2000. "heating Technology and Energy Use: a Discrete/Continuous Choice Approach to Norwegian Household Energy Demand," Norway; Department of Economics, University of Bergen 214, Department of Economics, University of Bergen.
- Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
- Schmertmann, Carl P., 1994. "Selectivity bias correction methods in polychotomous sample selection models," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 101-132.
- Halvorsen, Robert, 1975. "Residential Demand for Electric Energy," The Review of Economics and Statistics, MIT Press, vol. 57(1), pages 12-18, February.
- Nordhaus, William D, 1991. "To Slow or Not to Slow: The Economics of the Greenhouse Effect," Economic Journal, Royal Economic Society, vol. 101(407), pages 920-37, July.
- Peter M. Schwarz & Thomas N. Taylor, 1995. "Cold Hands, Warm Hearth? Climate, Net Takeback, and Household Comfort," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 41-54.
- Lee, Lung-Fei & Trost, Robert P., 1978. "Estimation of some limited dependent variable models with application to housing demand," Journal of Econometrics, Elsevier, vol. 8(3), pages 357-382, December.
- Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
- Garcia-Cerrutti, L. Miguel, 2000. "Estimating elasticities of residential energy demand from panel county data using dynamic random variables models with heteroskedastic and correlated error terms," Resource and Energy Economics, Elsevier, vol. 22(4), pages 355-366, October.
- Kamerschen, David R. & Porter, David V., 2004. "The demand for residential, industrial and total electricity, 1973-1998," Energy Economics, Elsevier, vol. 26(1), pages 87-100, January.
- Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-61, May.
- Sailor, D.J & Pavlova, A.A, 2003. "Air conditioning market saturation and long-term response of residential cooling energy demand to climate change," Energy, Elsevier, vol. 28(9), pages 941-951.
- Julie A. Hewitt & W. Michael Hanemann, 1995. "A Discrete/Continuous Choice Approach to Residential Water Demand under Block Rate Pricing," Land Economics, University of Wisconsin Press, vol. 71(2), pages 173-192.
- Gordon B. Dahl, 2002.
"Mobility and the Return to Education: Testing a Roy Model with Multiple Markets,"
Econometric Society, vol. 70(6), pages 2367-2420, November.
- Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER).
- Cameron, Trudy Ann, 1985. "A Nested Logit Model of Energy Conservation Activity by Owners of Existing Single Family Dwellings," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 205-11, May.
- Berg, Sanford V & Taylor, Christopher, 1994. "Electricity consumption in manufactured housing," Energy Economics, Elsevier, vol. 16(1), pages 54-62, January.
When requesting a correction, please mention this item's handle: RePEc:eee:jeeman:v:55:y:2008:i:2:p:175-193. 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: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.