U.S. commercial electricity consumption
Commercial electricity usage exceeds that of industrial usage and is almost as large as residential electricity consumption in the United States. In this study, regional economic, demographic, and climatic data are used to analyze commercial electricity demand in the United States. Results indicate that total commercial demand for electricity is negatively related to price. In addition, the number of businesses and service income positively affect electricity demand for commercial use. The results are similar for equations estimated for kilowatt-hours demanded per business. The regional dummy variables exhibit different signs, which may occur due to climate factors because warm weather regions experience greater volumes of cooling degree-days, while cool weather regions observe larger amounts of heating degree-days. Although coefficients for the price of natural gas are positive, they do not satisfy the 5-percent significance criterion. The latter suggests that natural gas may not be a substitute good for electricity within the commercial sector of the U.S. economy.
|Date of creation:||11 Jan 2010|
|Date of revision:||22 May 2011|
|Publication status:||Published in Mountain Plains Journal of Business & Economics 1.12(2011): pp. 27-41|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
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