Voluntarism and Price Response: Consumer Reaction to the Energy Shortage

A. E. Peck and O. C. Doering

Bell Journal of Economics, 1976, vol. 7, issue 1, 287-292

Abstract: In the winter 1973-1974, households using natural gas and liquid petroleum gas for heating were confronted by quite different price situations, though both were subjected to social pressure to conserve fuels. This paper examines data from a sample of these households over a three-year period to test the hypothesis that something more than a national conservation program is needed to create desired changes in consumption patterns. The results show that the national conservation ethic was not an effective inducement to change significantly household fuel-use efficiency. Households did make significant adjustments when, in addition to the conservation policy, they confronted higher prices.

Date: 1976
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