US Residential Energy Demand and Energy Efficiency: A Stochastic Demand Frontier Approach

Massimo Filippini and Lester Hunt

No 12-83, CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich

Abstract: This paper estimates a US frontier residential aggregate energy demand function using panel data for 48 ‘states’ over the period 1995 to 2007 using stochastic frontier analysis (SFA). Utilizing an econometric energy demand model, the (in)efficiency of each state is modelled and it is argued that this represents a measure of the inefficient use of residential energy in each state (i.e. ‘waste energy’). This underlying efficiency for the US is therefore observed for each state as well as the relative efficiency across the states. Moreover, the analysis suggests that energy intensity is not necessarily a good indicator of energy efficiency, whereas by controlling for a range of economic and other factors, the measure of energy efficiency obtained via this approach is. This is a novel approach to model residential energy demand and efficiency and it is arguably particularly relevant given current US energy policy discussions related to energy efficiency.

Keywords: US residential energy demand; efficiency and frontier analysis; state energy efficiency (search for similar items in EconPapers)
JEL-codes: D2 Q4 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2012-04
New Economics Papers: this item is included in nep-eff and nep-ene
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (131)

Downloads: (external link)
http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP83.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not found UA (http://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP83.pdf [301 Moved Permanently]--> https://www.cepe.ethz.ch/publications/workingPapers/CEPE_WP83.pdf [301 Moved Permanently]--> https://cepe.ethz.ch/publications/workingPapers/CEPE_WP83.pdf)

Related works:
Journal Article: US residential energy demand and energy efficiency: A stochastic demand frontier approach (2012)
Working Paper: US Residential Energy Demand and Energy Efficiency: A Stochastic Demand Frontier Approach (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cee:wpcepe:12-83

Access Statistics for this paper

More papers in CEPE Working paper series from CEPE Center for Energy Policy and Economics, ETH Zurich Contact information at EDIRC.
Bibliographic data for series maintained by Carlos Ordas ().