The Demand for Space Heating Energy
The Review of Economics and Statistics
1975
PREVIOUS studies of residential and commercial energy use, exclusive of electricity, have generally found that price is not a significant determinant of demand.' This paper analyzes the demand for space heating energy using cross-sectional data by state for 1971. We find that price is a significant determinant of demand with an elasticity of approximately -0.3. In deriving this estimate, explicit attention is given to: (1) discrimination among alternative functional forms since average price data rather than marginal prices are used; and (2) specification of relationships that attempt to capture the trade-off that exists between energy inputs and housing construction and insulation materials.
- DOI
- 10.2307/1935912
- Volume
- 57 (4)
- Pages
- 508
- Export
- BibTeX
- Sources
- openalex crossref