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Cold Hands, Warm Hearth? Climate, Net Takeback, and Household Comfort

Peter M. Schwarz and Thomas N. Taylor

Year: 1995
Volume: Volume16
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No1-3
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Abstract:
Insulation reduces marginal heating cost and may lead to a takeback effect of higher wintertime thermostat settings, with a consequent dilution of energy savings. Alternatively, additional insulation could permit a lower thermostat setting by reducing drafts and radiation while increasing moisture retention, thereby enhancing comfort. This paper evaluates thermostat net takeback, the difference between takeback and enhanced comfort. Evidence supports the existence of both effects, with net takeback at the low end of literature estimates. Net thermostat takeback is on the order of 0.05 degrees F, leading to an energy takeback that ranges from 1-3% of potential energy savings, depending on climate and house size. Other significant determinants of thermostat are heating energy price and the presence of elderly or young occupants.



Household energy demand in Urban China: Accounting for regional prices and rapid income change

Jing Cao, Mun S. Ho, and Huifang Liang

Year: 2016
Volume: Volume 37
Number: China Special Issue
DOI: 10.5547/01956574.37.SI1.jcao
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Abstract:
Understanding the rapidly rising demand for energy in China is essential to efforts to reduce the country's energy use and environmental damage. In response to rising incomes and changing prices and demographics, household use of various fuels, electricity and gasoline has changed dramatically in China. In this paper, we estimate both income and price elasticities for various energy types using Chinese urban household micro-data collected by National bureau of Statistics, by applying a two-stage budgeting AIDS model. We find that total energy is price and income inelastic for all income groups after accounting for demographic and regional effects. Our estimated electricity price elasticity ranges from - 0.49 to -0.57, gas price elasticity ranges from -0.46 to -0.94, and gasoline price elasticity ranges from -0.85 to -0.94. Income elasticity for various energy types range from 0.57 to 0.94. Demand for coal is most price and income elastic among the poor, whereas gasoline demand is elastic for the rich.





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