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An Analysis of Department of Energy Residential Appliance Efficiency Standards

Raymond S. Hartman & MIT Energy Laboratory

Year: 1981
Volume: Volume 2
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol2-No3-5
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Abstract:
Over the past several years, the Department of Energy (DOE) and its predecessor agencies have initiated an array of policies aimed at limiting domestic consumption of fossil fuels. Several policy initiatives, aimed at residential fossil-based energy conservation, have included residential appliance efficiency standards, the commercialization of residential applications of solar photovoltaic (PV) installations and solar thermal appliances, and the implementation of energy performance standards for buildings. Each of these programs alone will reduce residential fossil fuel consumption. However, it remains unclear how they interact. In this article I examine how two programs may interact. In particular, I assess how well appliance efficiency standards will reduce fuel consumption and whether a standards program will conflict with or complement the DOE's PV commercialization efforts.

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Natural Gas Availability and the Residential Demand for Energy

Gail R. Blattenberger, Lester D. Taylor, and Robert K.Rennhack

Year: 1983
Volume: Volume 4
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No1-2
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Abstract:
Not all households have access to pipeline-delivered natural gas.This fact affects not only the demand for natural gas but the demand for electricity and fuel oil as well. Since electricity and natural gas are substitutes in cooking, space heating, water heating, and (to a much lesser extent) cooling, the price elasticity of demand for electricity will be larger when gas is available than when it is not. Fuel oil and natural gas are substitutes in cooking, space heating, and water heating, so that oneshould also expect larger price elasticities for fuel oil when gas is available.

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U.S. Residential Demand for Wood

Richard R. Bryant

Year: 1986
Volume: Volume 7
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No3-11
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Abstract:
A recent nationwide survey estimated that approximately 20 million households in the United States use wood as a source of heating fuel and that about 30 percent of those use wood as their primary source of space heat.' In two studies of total wood energy consumption, the U.S. Department of Energy suggests that residential wood energy use declined from the turn of the century to the mid-1970s but increased by more than 130 percent from 1973 to 1980 and by another 8 percent from 1980 to 1983.2 These studies report that by 1983 wood provided about 9.6 percent of residential end-use energy consumption and approximately 14 percent of total household heating fuel consumption. Moreover, residential wood energy use is expected to continue to increase. The Office of Technology Assessment has projected a tripling of fuelwood use between 1979 and 2000 under a business as usual scenerio and almost a sevenfold increase with "vigorous support and high energy prices."

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Residential Energy Demand and the Taxation of Housing

William M. Gentry

Year: 1994
Volume: Volume15
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol15-No2-5
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Abstract:
This paper examines how the favorable tax treatment of housing capital in the U.S. affects the demand for residential energy. Relative to a tax system that is neutral between different investments, the current taxation of housing lowers the cost of housing capital by 23%. The tax subsidy for housing capital increases the demand for housing services and the concomitant energy demand and creates an incentive for the substitution of capital for energy in the production of housing services. Eliminating this tax subsidy for housing would lower the demand for housing services by 11.8% and residential energy demand by 68%. Alternatively, the same reduction in residential energy demand could be obtained through a 20% tax on residential energy.

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A Residential Energy Demand System for Spain

Xavier Labandeira, José M. Labeaga and Miguel Rodríguez

Year: 2006
Volume: Volume 27
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol27-No2-6
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Abstract:
Sharp price fluctuations and increasing environmental and distributional concerns, among other issues, have led to a renewed academic interest in energy demand. In this paper we estimate, for the first time in Spain, an energy demand system with household microdata. In doing so, we tackle several econometric and data problems that are generally recognized to bias parameter estimates. This is obviously relevant, as obtaining correct price and income responses is essential if they may be used for assessing the economic consequences of hypothetical or real changes. With this objective, we combine data sources for a long time period and choose a demand system with flexible income and price responses. We also estimate the model in different sub-samples to capture varying responses to energy price changes by households living in rural, intermediate and urban areas. This constitutes a first attempt in the literature and it proved to be a very successful choice.

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From Residential Energy Demand to Fuel Poverty: Income-induced Non-linearities in the Reactions of Households to Energy Price Fluctuations

Dorothee Charlier and Sondes Kahouli

Year: 2019
Volume: Volume 40
Number: Number 2
DOI: 10.5547/01956574.40.2.dcha
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Abstract:
The residential energy demand is growing steadily and the trend is expected to continue in the near future. At the same time, under the impulse of economic crises and environmental and energy policies, many households have experienced reductions in real income and higher energy prices. In the residential sector, the number of fuel-poor households is thus expected to rise. A better understanding of the determinants of residential energy demand, in particular of the role of income and the sensitivity of households to changes in energy prices, is crucial in the context of recurrent debates on energy efficiency and fuel poverty. We propose a panel threshold regression (PTR) model to empirically test the sensitivity of French households to energy price fluctuations - as measured by the elasticity of residential heating energy prices - and to analyze the overlap between their income and fuel poverty profiles. The PTR model allows to test for the non-linear effect of income on the reactions of households to fluctuations in energy prices. Thus, it can identify specific regimes differing by their level of estimated price elasticities. Each regime represents an elasticity-homogeneous group of households. The number of these regimes is determined based on an endogenously PTR-fixed income threshold. Thereafter, we analyze the composition of the regimes (i.e. groups) to locate the dominant proportion of fuel-poor households and analyse their monetary poverty characteristics. Results show that, depending on the income level, we can identify two groups of households that react differently to residential energy price fluctuations and that fuel-poor households belong mostly to the group of households with the highest elasticity. By extension, results also show that income poverty does not necessarily mean fuel poverty. In terms of public policy, we suggest focusing on income heterogeneity by considering different groups of households separately when defining energy efficiency measures. We also suggest paying particular attention to targeting fuel-poor households by examining the overlap between fuel and income poverty.

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