A Model of Energy Demand in the U.S. Commercial Sector with Declining Rate Schedules

Frank Denton, Dean Mountain () and Byron Spencer

Quantitative Studies in Economics and Population Research Reports from McMaster University

Abstract: A model of the demand for electricity and natural gas in commercial buildings is specified and estimated using data from the Commercial Building Energy Consumption Survey. Although not observed, declining rate schedules are allowed for by an adaptation of a method proposed by Halvorsen (1975). As well as prices, temperature variables and a large number of building characteristics are incorporated into the model as explanatory variables. Demand and rate schedule equations constitute a simultaneous system, with prices and quantities jointly determined. The effects on price elasticities of using (endogenous) marginal rather than (exogenous) average prices are estimated to be quite large.

Keywords: energy demand; declining rate schedules (search for similar items in EconPapers)
JEL-codes: C30 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2000-02
New Economics Papers: this item is included in nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:mcm:qseprr:346

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