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Electricity Consumption and Durable Housing: Understanding Cohort Effects

  • Dora L. Costa
  • Matthew E. Kahn

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.

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File URL: http://www.nber.org/papers/w16732.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16732.

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Date of creation: Jan 2011
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Publication status: published as 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:nbr:nberwo:16732
Note: EEE
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  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 537-63, 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.
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