The Production of Housing Services and the Derived Demand for Residential Energy

John Quigley

RAND Journal of Economics, 1984, vol. 15, issue 4, 555-567

Abstract: Most studies of residential energy usage treat energy as a final consumer good. This study explicitly considers the production of housing service flows from stocks of real estate and flows of operating inputs, and considers the demand for residential energy as a factor input. The empirical results, based upon analysis of a sample of newly constructed dwellings and their occupants, are used to evaluate the effects of energy price changes on the price of housing services and on the demand for housing and real estate--thus indicating the extent of residential energy "conservation" in response to higher prices. Finally, the results are used to analyze federal and state tax subsidies for residential energy conservation.

Date: 1984
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