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Voluntarism and Price Response: Consumer Reaction to the Energy Shortage

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  • A. E. Peck
  • O. C. Doering III

Abstract

In the winter 1973-1974, households using natural gas and liquid petroleum gas for heating were confronted by quite different price situations, though both were subjected to social pressure to conserve fuels. This paper examines data from a sample of these households over a three-year period to test the hypothesis that something more than a national conservation program is needed to create desired changes in consumption patterns. The results show that the national conservation ethic was not an effective inducement to change significantly household fuel-use efficiency. Households did make significant adjustments when, in addition to the conservation policy, they confronted higher prices.

Suggested Citation

  • A. E. Peck & O. C. Doering III, 1976. "Voluntarism and Price Response: Consumer Reaction to the Energy Shortage," Bell Journal of Economics, The RAND Corporation, vol. 7(1), pages 287-292, Spring.
    • Handle: RePEc:rje:bellje:v:7:y:1976:i:spring:p:287-292
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    Cited by:

    1. Matthew Kotchen & Michael Moore, 2008. "Conservation: From Voluntary Restraint to a Voluntary Price Premium," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 40(2), pages 195-215, June.
    2. Peter C. Reiss & Matthew W. White, 2008. "What changes energy consumption? Prices and public pressures," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 636-663, September.
    3. Sexton, Steven E., 2010. "Rationing Public Goods by Cooperation or Pecuniary Incentives: Evidence from the Spare-the-Air Program," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5xs9r6t8, Department of Agricultural & Resource Economics, UC Berkeley.
    4. Matthew J. Kotchen & Michael R. Moore, 2004. "Conservation Behavior: From Voluntary Restraint to a Voluntary Price Premium," Department of Economics Working Papers 2004-16, Department of Economics, Williams College.
    5. Steven Sexton, 2012. "Paying for Pollution? How General Equilibrium Effects Undermine the “Spare the Air” Program," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(4), pages 553-575, December.

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