Modeling household energy expenditure in the United States

Mahmoud Salari and Roxana J. Javid

Renewable and Sustainable Energy Reviews, 2017, vol. 69, issue C, 822-832

Abstract: Energy consumption is one of the main source of air pollution, greenhouse gas emission, and global warming. Reducing household energy consumption is a key goal of policymakers. We develop statistical models using socio-economics and demographics, building characteristics, location, temperature, and energy prices to estimate household energy expenditure in the U.S. We use household energy expenditure for more than 560,000 households in the U.S. from 2010 to 2012. We first employ multivariate regression models to investigate and identify the impacts of the explanatory variables on household energy expenditure. Next, we use Principal Component Analysis (PCA) to convert correlated co-linear explanatory variables into orthogonal components and estimate household energy expenditure by principal component regression. We find newer attached buildings to be effective in decreasing household energy expenditure, particularly among educated people in metropolitan areas. With sufficient data availability, our model could be used by state, regional, or even city-level policymakers and planners to optimize their infrastructural investments.

Keywords: Household energy expenditure; Gas expenditure; Electricity expenditure; Reducing household energy consumption; Principal component analysis; Statistical data analysis (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032116309455
Full text for ScienceDirect subscribers only

Related works:
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:eee:rensus:v:69:y:2017:i:c:p:822-832

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2016.11.183

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().